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| (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | ||||||||||||||||
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| (Address of Principal Executive Offices) | (Zip Code) | ||||||||||||||||
| (Registrant's telephone number, including area code) |
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| Securities Registered Pursuant to Section 12(b) of the Act: | ||||||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
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||||||
| Page | ||||||||
| Item 16 | ||||||||
| County |
Number of
Branches |
Deposits
(in millions) |
Market
Share |
Number of
Competitors |
||||||||||||||||||||||
| Alamance, NC | 1 | $ | 74 | 2.5 | % | 15 | ||||||||||||||||||||
| Beaufort, NC | 2 | 114 | 15.7 | % | 5 | |||||||||||||||||||||
| Bladen, NC | 1 | 72 | 13.5 | % | 4 | |||||||||||||||||||||
| Brunswick, NC | 4 | 306 | 9.8 | % | 10 | |||||||||||||||||||||
| Buncombe, NC | 8 | 702 | 10.2 | % | 16 | |||||||||||||||||||||
| Cabarrus, NC | 2 | 67 | 2.1 | % | 10 | |||||||||||||||||||||
| Carteret, NC | 2 | 91 | 5.6 | % | 9 | |||||||||||||||||||||
| Chatham, NC | 2 | 71 | 8.3 | % | 8 | |||||||||||||||||||||
| Chesterfield, SC | 1 | 54 | 11.7 | % | 6 | |||||||||||||||||||||
| Columbus, NC | 2 | 88 | 10.4 | % | 5 | |||||||||||||||||||||
| Cumberland, NC | 1 | 44 | 0.9 | % | 14 | |||||||||||||||||||||
| Dare, NC | 1 | 37 | 2.7 | % | 8 | |||||||||||||||||||||
| Davidson, NC | 2 | 184 | 6.3 | % | 9 | |||||||||||||||||||||
| Dillon, SC | 3 | 77 | 21.6 | % | 4 | |||||||||||||||||||||
| Duplin, NC | 3 | 214 | 20.0 | % | 6 | |||||||||||||||||||||
| Florence, SC | 2 | 80 | 2.9 | % | 13 | |||||||||||||||||||||
| Forsyth, NC | 4 | 81 | 0.8 | % | 16 | |||||||||||||||||||||
| Guilford, NC | 6 | 589 | 4.2 | % | 21 | |||||||||||||||||||||
| Harnett, NC | 3 | 159 | 13.0 | % | 8 | |||||||||||||||||||||
| Henderson, NC | 2 | 105 | 4.3 | % | 10 | |||||||||||||||||||||
| Iredell, NC | 2 | 86 | 2.2 | % | 19 | |||||||||||||||||||||
| Lee, NC | 3 | 252 | 24.3 | % | 9 | |||||||||||||||||||||
| Madison, NC | 1 | 48 | 44.2 | % | 1 | |||||||||||||||||||||
| McDowell, NC | 1 | 84 | 21.8 | % | 4 | |||||||||||||||||||||
| Mecklenburg, NC | 2 | 84 | 0.0 | % | 30 | |||||||||||||||||||||
| Montgomery, NC | 2 | 148 | 40.8 | % | 2 | |||||||||||||||||||||
| Moore, NC | 10 | 674 | 32.0 | % | 9 | |||||||||||||||||||||
| New Hanover, NC | 5 | 340 | 2.6 | % | 19 | |||||||||||||||||||||
| Onslow, NC | 2 | 133 | 8.7 | % | 10 | |||||||||||||||||||||
| Pitt, NC | 1 | 52 | 1.6 | % | 14 | |||||||||||||||||||||
| Randolph, NC | 3 | 221 | 10.4 | % | 10 | |||||||||||||||||||||
| Richmond, NC | 1 | 70 | 13.9 | % | 5 | |||||||||||||||||||||
| Robeson, NC | 4 | 253 | 19.7 | % | 8 | |||||||||||||||||||||
| Rockingham, NC | 1 | 32 | 2.5 | % | 9 | |||||||||||||||||||||
| Rowan, NC | 1 | 86 | 4.0 | % | 12 | |||||||||||||||||||||
| Scotland, NC | 1 | 125 | 28.6 | % | 5 | |||||||||||||||||||||
| Stanly, NC | 4 | 166 | 13.6 | % | 6 | |||||||||||||||||||||
| Transylvania, NC | 1 | 32 | 4.5 | % | 5 | |||||||||||||||||||||
| Wake, NC | 4 | 159 | 0.5 | % | 32 | |||||||||||||||||||||
| Brokered Deposits | — | 20 | ||||||||||||||||||||||||
|
Total
|
101 | $ | 6,274 | |||||||||||||||||||||||
|
Total Return Index Values (1)
December 31, |
|||||||||||||||||||||||||||||||||||
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||
|
First Bancorp
|
$ | 100.00 | 147.11 | 193.30 | 180.73 | 224.09 | 195.60 | ||||||||||||||||||||||||||||
|
Russell 2000
|
100.00 | 121.31 | 139.08 | 123.76 | 155.35 | 186.36 | |||||||||||||||||||||||||||||
|
SNL Index-Banks between $5 billion and $10 billion
|
100.00 | 143.27 | 142.73 | 129.17 | 160.06 | 145.37 | |||||||||||||||||||||||||||||
| Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
| Period |
Total Number of Shares
Purchased |
Average Price
Paid Per Share |
Total Number of Shares
Purchased as Part of Publicly Announced Plans or Programs (1) |
Maximum Number of Shares (or Approximate Dollar Value)
That May Yet Be Purchased Under the Plans or Programs (1) |
||||||||||||||||||||||
| Month #1 (October 1, 2020 to October 31, 2020) | 57,774 | $ | 23.69 | 57,774 | $ | 9,929,958 | ||||||||||||||||||||
| Month #2 (November 1, 2020 to November 30, 2020) | 73,639 | $ | 24.42 | 73,639 | $ | 8,131,572 | ||||||||||||||||||||
| Month #3 (December 1, 2020 to December 31, 2020) | — | $ | — | — | $ | 8,131,572 | ||||||||||||||||||||
| Total | 131,413 | $ | 24.10 | 131,413 | $ | 8,131,572 | ||||||||||||||||||||
| Financial Highlights | |||||||||||||||||
| ($ in thousands except per share data) | 2020 | 2019 | Change | ||||||||||||||
|
Earnings
|
|||||||||||||||||
|
Net interest income
|
$ | 218,122 | 216,204 | 0.9 | % | ||||||||||||
| Provision for loan losses | 35,039 | 2,263 | 1,448.3 | % | |||||||||||||
|
Noninterest income
|
81,346 | 59,529 | 36.6 | % | |||||||||||||
|
Noninterest expenses
|
161,298 | 157,194 | 2.6 | % | |||||||||||||
|
Income before income taxes
|
103,131 | 116,276 | (11.3) | % | |||||||||||||
|
Income tax expense
|
21,654 | 24,230 | (10.6) | % | |||||||||||||
|
Net income
|
$ | 81,477 | 92,046 | (11.5) | % | ||||||||||||
|
Net income per common share
|
|||||||||||||||||
|
Basic
|
$ | 2.81 | 3.10 | (9.4) | % | ||||||||||||
|
Diluted
|
2.81 | 3.10 | (9.4) | % | |||||||||||||
|
Balances At Year End
|
|||||||||||||||||
|
Assets
|
$ | 7,289,751 | 6,143,639 | 18.7 | % | ||||||||||||
|
Loans
|
4,731,315 | 4,453,466 | 6.2 | % | |||||||||||||
|
Deposits
|
6,273,596 | 4,931,355 | 27.2 | % | |||||||||||||
|
Ratios
|
|||||||||||||||||
|
Return on average assets
|
1.20 | % | 1.53 | % | |||||||||||||
|
Return on average common equity
|
9.32 | % | 11.32 | % | |||||||||||||
|
Net interest margin (taxable-equivalent)
|
3.56 | % | 4.00 | % | |||||||||||||
| Financial Highlights | |||||||||||||||||
| ($ in thousands except per share data) | 2019 | 2018 | Change | ||||||||||||||
|
Earnings
|
|||||||||||||||||
|
Net interest income
|
$ | 216,204 | 207,430 | 4.2 | % | ||||||||||||
|
Provision (reversal) for loan losses
|
2,263 | (3,589) | n/m | ||||||||||||||
|
Noninterest income
|
59,529 | 58,942 | 1.0 | % | |||||||||||||
|
Noninterest expenses
|
157,194 | 156,483 | 0.5 | % | |||||||||||||
|
Income before income taxes
|
116,276 | 113,478 | 2.5 | % | |||||||||||||
|
Income tax expense
|
24,230 | 24,189 | 0.2 | % | |||||||||||||
|
Net income
|
$ | 92,046 | 89,289 | 3.1 | % | ||||||||||||
|
Net income per common share
|
|||||||||||||||||
|
Basic
|
$ | 3.10 | 3.02 | 2.6 | % | ||||||||||||
|
Diluted
|
3.10 | 3.01 | 3.0 | % | |||||||||||||
|
Balances At Year End
|
|||||||||||||||||
|
Assets
|
$ | 6,143,639 | 5,864,116 | 4.8 | % | ||||||||||||
|
Loans
|
4,453,466 | 4,249,064 | 4.8 | % | |||||||||||||
|
Deposits
|
4,931,355 | 4,659,339 | 5.8 | % | |||||||||||||
|
Ratios
|
|||||||||||||||||
|
Return on average assets
|
1.53 | % | 1.57 | % | |||||||||||||
|
Return on average common equity
|
11.32 | % | 12.27 | % | |||||||||||||
|
Net interest margin (taxable-equivalent)
|
4.00 | % | 4.09 | % | |||||||||||||
|
n/m – not meaningful
|
|||||||||||||||||
| ($ in thousands) | Year ended December 31, | ||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
Net interest income, as reported
|
$ | 218,122 | 216,204 | 207,430 | |||||||||||||
|
Tax-equivalent adjustment
|
1,468 | 1,641 | 1,594 | ||||||||||||||
|
Net interest income, tax-equivalent
|
$ | 219,590 | 217,845 | 209,024 | |||||||||||||
| ($ in thousands) |
Year Ended
December 31, 2020 |
Year Ended
December 31, 2019 |
Year Ended
December 31, 2018 |
||||||||||||||
|
Interest income – increased by accretion of loan discount on acquired loans
|
$ | 3,817 | 4,588 | 6,090 | |||||||||||||
|
Interest income - increased by accretion of loan discount on retained SBA loans
|
2,511 | 1,386 | 861 | ||||||||||||||
|
Interest expense – reduced by premium amortization of deposits
|
100 | 190 | 372 | ||||||||||||||
|
Interest expense – increased by discount accretion of borrowings
|
(181) | (181) | (181) | ||||||||||||||
|
Impact on net interest income
|
$ | 6,247 | 5,983 | 7,142 | |||||||||||||
| ($ in thousands) | For the year ended December 31, | |||||||||||||||||||
| Commissions earned from: | 2020 | 2019 | 2018 | |||||||||||||||||
|
Sales of investments, annuities, and long term care insurance
|
$ | 3,495 | 3,206 | 2,693 | ||||||||||||||||
|
Sales of property and casualty insurance
|
5,353 | 5,289 | 6,038 | |||||||||||||||||
|
Total
|
$ | 8,848 | 8,495 | 8,731 | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| 2020 |
Balance at
beginning of period |
Internal
growth, net |
Growth from Acquisitions |
Balance at
end of period |
Total
percentage growth |
|||||||||||||||||||||||||||
|
Loans outstanding
|
$ | 4,453,466 | 263,216 | 14,633 | 4,731,315 | 6.2 | % | |||||||||||||||||||||||||
|
Deposits – Noninterest-bearing
|
1,515,977 | 694,035 | — | 2,210,012 | 45.8 | % | ||||||||||||||||||||||||||
|
Deposits – Interest-bearing checking
|
912,784 | 259,238 | — | 1,172,022 | 28.4 | % | ||||||||||||||||||||||||||
|
Deposits – Money market
|
1,173,107 | 408,257 | — | 1,581,364 | 34.8 | % | ||||||||||||||||||||||||||
|
Deposits – Savings
|
424,415 | 94,851 | — | 519,266 | 22.3 | % | ||||||||||||||||||||||||||
|
Deposits – Brokered time
|
86,141 | (65,919) | — | 20,222 | -76.5 | % | ||||||||||||||||||||||||||
|
Deposits – Internet time
|
698 | (449) | — | 249 | -64.3 | % | ||||||||||||||||||||||||||
|
Deposits – Time >$100,000 – retail
|
563,108 | (19,214) | — | 543,894 | -3.4 | % | ||||||||||||||||||||||||||
|
Deposits – Time <$100,000 – retail
|
255,125 | (28,558) | — | 226,567 | -11.2 | % | ||||||||||||||||||||||||||
|
Total deposits
|
$ | 4,931,355 | 1,342,241 | — | 6,273,596 | 27.2 | % | |||||||||||||||||||||||||
| 2019 | ||||||||||||||||||||||||||||||||
|
Loans outstanding
|
$ | 4,249,064 | 204,402 | — | 4,453,466 | 4.8 | % | |||||||||||||||||||||||||
|
Deposits – Noninterest-bearing
|
1,320,131 | 195,846 | — | 1,515,977 | 14.8 | % | ||||||||||||||||||||||||||
|
Deposits – Interest-bearing checking
|
916,374 | (3,590) | — | 912,784 | -0.4 | % | ||||||||||||||||||||||||||
|
Deposits – Money market
|
1,035,523 | 137,584 | — | 1,173,107 | 13.3 | % | ||||||||||||||||||||||||||
|
Deposits – Savings
|
432,389 | (7,974) | — | 424,415 | -1.8 | % | ||||||||||||||||||||||||||
|
Deposits – Brokered time
|
239,875 | (153,734) | — | 86,141 | -64.1 | % | ||||||||||||||||||||||||||
|
Deposits – Internet time
|
3,428 | (2,730) | — | 698 | -79.6 | % | ||||||||||||||||||||||||||
|
Deposits – Time >$100,000 – retail
|
447,619 | 115,489 | — | 563,108 | 25.8 | % | ||||||||||||||||||||||||||
|
Deposits – Time <$100,000 – retail
|
264,000 | (8,875) | — | 255,125 | -3.4 | % | ||||||||||||||||||||||||||
|
Total deposits
|
$ | 4,659,339 | 272,016 | — | 4,931,355 | 5.8 | % | |||||||||||||||||||||||||
|
($ in thousands
)
|
||||||||||||||||||||||||||
| Issuer |
Issuer
Ratings |
Maturity Date | Amortized Cost | Fair Value | ||||||||||||||||||||||
|
Bank of America
|
A2 | (1) | various | $ | 7,000 | 7,409 | ||||||||||||||||||||
| Citigroup (senior) | A3 | (1) | 3/1/2023 | 5,011 | 5,288 | |||||||||||||||||||||
| Citigroup (subordinated) | Baa2 | (1) | 7/30/2022 | 1,002 | 1,058 | |||||||||||||||||||||
|
Goldman Sachs
|
A2 | (1) | 1/22/2023 | 5,037 | 5,319 | |||||||||||||||||||||
|
JP Morgan Chase
|
A2 | (1) | 1/25/2023 | 5,009 | 5,294 | |||||||||||||||||||||
|
Financial Institutions, Inc.
|
BBB- | (2) | 4/15/2030 | 4,000 | 3,956 | |||||||||||||||||||||
|
Wells Fargo
|
A3 | (1) | 2/13/2023 | 3,084 | 3,261 | |||||||||||||||||||||
|
Eagle Bancorp, Inc.
|
BBB | (2) | 9/1/2024 | 2,527 | 2,635 | |||||||||||||||||||||
| First Citizens BancShares | Not Rated | 3/15/2030 | 10,000 | 10,165 | ||||||||||||||||||||||
| First Citizens BancShares Trust Preferred Security | Not Rated | 6/15/2034 | 1,000 | 835 | ||||||||||||||||||||||
|
Total investment in corporate bonds
|
$ | 43,670 | 45,220 | |||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||
| Issuer | Amortized Cost | Fair Value |
% of
Shareholders’ Equity |
||||||||||||||
| Fannie Mae | $ | 571,245 | 585,035 | 65.5 | % | ||||||||||||
| Freddie Mac | 549,811 | 552,830 | 61.9 | % | |||||||||||||
| Ginnie Mae | 234,780 | 237,159 | 26.5 | % | |||||||||||||
| Total | $ | 1,355,836 | 1,375,024 | ||||||||||||||
| ($ in thousands) |
At December 31,
2020 |
At December 31,
2019 |
|||||||||
|
Commercial, financial, and agricultural
|
$ | 9,681 | 5,518 | ||||||||
|
Real estate – construction, land development, and other land loans
|
643 | 1,067 | |||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
6,048 | 7,552 | |||||||||
|
Real estate – mortgage – home equity loans/lines of credit
|
1,333 | 1,797 | |||||||||
|
Real estate – mortgage – commercial and other
|
17,191 | 8,820 | |||||||||
|
Installment loans to individuals
|
180 | 112 | |||||||||
|
Total nonaccrual loans
|
$ | 35,076 | 24,866 | ||||||||
| $ in thousands | At December 31, 2020 | At December 31, 2019 | |||||||||
|
Vacant land and farmland
|
$ | 753 | 1,752 | ||||||||
|
1-4 family residential properties
|
517 | 974 | |||||||||
|
Commercial real estate
|
1,154 | 1,147 | |||||||||
|
Total foreclosed real estate
|
$ | 2,424 | 3,873 | ||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
Noninterest-bearing checking accounts
|
35 | % | 31 | % | 28 | % | |||||||||||
|
Interest-bearing checking accounts
|
19 | % | 18 | % | 20 | % | |||||||||||
|
Money market deposits
|
25 | % | 24 | % | 22 | % | |||||||||||
|
Savings deposits
|
8 | % | 9 | % | 9 | % | |||||||||||
|
Time deposits - Brokered
|
— | % | 2 | % | 5 | % | |||||||||||
|
Time deposits > $100,000 – retail
|
9 | % | 11 | % | 10 | % | |||||||||||
|
Time deposits < $100,000 – retail
|
4 | % | 5 | % | 6 | % | |||||||||||
| Total deposits | 100 | % | 100 | % | 100 | % | |||||||||||
| ($ in millions) | ||||||||||||||||||||
| Type of Commitment | Fixed Rate | Variable Rate | Total | |||||||||||||||||
|
Loan commitments
|
$ | 239 | 94 | 333 | ||||||||||||||||
|
Unused lines of credit
|
188 | 900 | 1,088 | |||||||||||||||||
|
Total
|
$ | 427 | 994 | 1,421 | ||||||||||||||||
| Table 1 Selected Consolidated Financial Data | |||||||||||||||||||||||||||||
| ($ in thousands, except per share and nonfinancial data) | Year Ended December 31, | ||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
| Income Statement Data | |||||||||||||||||||||||||||||
| Interest income | $ | 237,684 | 250,107 | 231,207 | 177,382 | 130,987 | |||||||||||||||||||||||
| Interest expense | 19,562 | 33,903 | 23,777 | 12,671 | 7,607 | ||||||||||||||||||||||||
| Net interest income | 218,122 | 216,204 | 207,430 | 164,711 | 123,380 | ||||||||||||||||||||||||
| Provision (reversal) for loan losses | 35,039 | 2,263 | (3,589) | 723 | (23) | ||||||||||||||||||||||||
| Net interest income after provision | 183,083 | 213,941 | 211,019 | 163,988 | 123,403 | ||||||||||||||||||||||||
| Noninterest income | 81,346 | 59,529 | 58,942 | 49,232 | 26,176 | ||||||||||||||||||||||||
| Noninterest expense | 161,298 | 157,194 | 156,483 | 145,481 | 107,446 | ||||||||||||||||||||||||
| Income before income taxes | 103,131 | 116,276 | 113,478 | 67,739 | 42,133 | ||||||||||||||||||||||||
| Income taxes | 21,654 | 24,230 | 24,189 | 21,767 | 14,624 | ||||||||||||||||||||||||
| Net income | 81,477 | 92,046 | 89,289 | 45,972 | 27,509 | ||||||||||||||||||||||||
| Preferred stock dividends | — | — | — | — | (175) | ||||||||||||||||||||||||
| Net income available to common shareholders | 81,477 | 92,046 | 89,289 | 45,972 | 27,334 | ||||||||||||||||||||||||
| Earnings per common share – basic | 2.81 | 3.10 | 3.02 | 1.82 | 1.37 | ||||||||||||||||||||||||
| Earnings per common share – diluted | 2.81 | 3.10 | 3.01 | 1.82 | 1.33 | ||||||||||||||||||||||||
| Per Share Data (Common) | |||||||||||||||||||||||||||||
| Cash dividends declared – common | $ | 0.72 | 0.54 | 0.40 | 0.32 | 0.32 | |||||||||||||||||||||||
| Market Price | |||||||||||||||||||||||||||||
| High | 40.00 | 41.34 | 43.14 | 41.76 | 28.49 | ||||||||||||||||||||||||
| Low | 17.32 | 31.22 | 30.50 | 26.47 | 17.15 | ||||||||||||||||||||||||
| Close | 33.83 | 39.91 | 32.66 | 35.31 | 27.14 | ||||||||||||||||||||||||
| Stated book value – common | 31.26 | 28.80 | 25.71 | 23.38 | 17.66 | ||||||||||||||||||||||||
| Selected Balance Sheet Data (at year end) | |||||||||||||||||||||||||||||
| Total assets | $ | 7,289,751 | 6,143,639 | 5,864,116 | 5,547,037 | 3,614,862 | |||||||||||||||||||||||
| Loans | 4,731,315 | 4,453,466 | 4,249,064 | 4,042,369 | 2,710,712 | ||||||||||||||||||||||||
| Allowance for loan losses | 52,388 | 21,398 | 21,039 | 23,298 | 23,781 | ||||||||||||||||||||||||
| Intangible assets | 254,638 | 251,585 | 255,480 | 257,507 | 79,475 | ||||||||||||||||||||||||
| Deposits | 6,273,596 | 4,931,355 | 4,659,339 | 4,406,955 | 2,947,353 | ||||||||||||||||||||||||
| Borrowings | 61,829 | 300,671 | 406,609 | 407,543 | 271,394 | ||||||||||||||||||||||||
| Total shareholders’ equity | 893,421 | 852,401 | 764,230 | 692,979 | 368,101 | ||||||||||||||||||||||||
| Selected Average Balances | |||||||||||||||||||||||||||||
| Assets | $ | 6,765,998 | 6,027,047 | 5,693,760 | 4,590,786 | 3,422,267 | |||||||||||||||||||||||
| Loans | 4,702,743 | 4,346,331 | 4,161,838 | 3,420,939 | 2,603,327 | ||||||||||||||||||||||||
| Earning assets | 6,160,100 | 5,448,400 | 5,112,436 | 4,101,949 | 3,108,918 | ||||||||||||||||||||||||
| Deposits | 5,644,290 | 4,824,216 | 4,516,811 | 3,696,730 | 2,827,513 | ||||||||||||||||||||||||
| Interest-bearing liabilities | 3,897,912 | 3,720,536 | 3,663,077 | 3,025,401 | 2,324,823 | ||||||||||||||||||||||||
| Shareholders’ equity | 874,532 | 812,823 | 727,920 | 533,205 | 360,715 | ||||||||||||||||||||||||
| Ratios | |||||||||||||||||||||||||||||
| Return on average assets | 1.20 | % | 1.53 | % | 1.57 | % | 1.00 | % | 0.80 | % | |||||||||||||||||||
| Return on average common equity | 9.32 | % | 11.32 | % | 12.27 | % | 8.62 | % | 7.73 | % | |||||||||||||||||||
| Net interest margin (taxable-equivalent basis) | 3.56 | % | 4.00 | % | 4.09 | % | 4.08 | % | 4.03 | % | |||||||||||||||||||
| Loans to deposits at year end | 75.42 | % | 90.31 | % | 91.19 | % | 91.73 | % | 91.97 | % | |||||||||||||||||||
| Allowance for loan losses to total loans | 1.11 | % | 0.48 | % | 0.50 | % | 0.58 | % | 0.88 | % | |||||||||||||||||||
| Nonperforming assets to total assets at year end | 0.64 | % | 0.62 | % | 0.74 | % | 0.96 | % | 1.64 | % | |||||||||||||||||||
| Net charge-offs (recoveries) to average total loans | 0.09 | % | 0.04 | % | (0.03 | %) | 0.04 | % | 0.14 | % | |||||||||||||||||||
| Nonfinancial Data – number of branches | 101 | 101 | 101 | 104 | 88 | ||||||||||||||||||||||||
| Nonfinancial Data – number of employees (FTEs) | 1,095 | 1,088 | 1,076 | 1,140 | 834 | ||||||||||||||||||||||||
| Note - During 2017, the Company completed two significant whole-bank acquisitions. See additional discussion in "Mergers and Acquisitions" in Item 1. | |||||||||||||||||||||||||||||
| Table 2 Average Balances and Net Interest Income Analysis | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) |
Average
Volume |
Avg.
Rate |
Interest
Earned or Paid |
Average
Volume |
Avg.
Rate |
Interest
Earned or Paid |
Average
Volume |
Avg.
Rate |
Interest
Earned or Paid |
||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Loans (1) (2)
|
$ | 4,702,743 | 4.53 | % | $ | 213,099 | $ | 4,346,331 | 5.08 | % | $ | 220,784 | $ | 4,161,838 | 5.01 | % | $ | 208,609 | |||||||||||||||||||||||||||||||||||
|
Taxable securities
|
967,900 | 2.11 | % | 20,429 | 719,435 | 2.76 | % | 19,881 | 419,356 | 2.54 | % | 10,638 | |||||||||||||||||||||||||||||||||||||||||
|
Non-taxable securities
|
34,108 | 2.13 | % | 725 | 32,200 | 3.13 | % | 1,007 | 50,945 | 2.91 | % | 1,482 | |||||||||||||||||||||||||||||||||||||||||
|
Other interest-earning assets, primarily overnight funds
|
455,349 | 0.75 | % | 3,431 | 350,434 | 2.41 | % | 8,435 | 480,297 | 2.18 | % | 10,478 | |||||||||||||||||||||||||||||||||||||||||
|
Total interest-earning assets
|
6,160,100 | 3.86 | % | 237,684 | 5,448,400 | 4.59 | % | 250,107 | 5,112,436 | 4.52 | % | 231,207 | |||||||||||||||||||||||||||||||||||||||||
|
Cash and due from banks
|
81,154 | 55,422 | 80,053 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Premises and equipment
|
116,425 | 117,465 | 115,573 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other assets
|
408,319 | 405,760 | 385,698 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total assets
|
$ | 6,765,998 | $ | 6,027,047 | $ | 5,693,760 | |||||||||||||||||||||||||||||||||||||||||||||||
|
Liabilities and Equity
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Interest-bearing checking accounts
|
$ | 1,019,773 | 0.12 | % | $ | 1,208 | $ | 891,766 | 0.15 | % | $ | 1,358 | $ | 875,751 | 0.10 | % | $ | 887 | |||||||||||||||||||||||||||||||||||
|
Money market accounts
|
1,367,851 | 0.34 | % | 4,632 | 1,111,599 | 0.63 | % | 6,992 | 1,023,162 | 0.32 | % | 3,265 | |||||||||||||||||||||||||||||||||||||||||
|
Savings accounts
|
467,682 | 0.15 | % | 711 | 419,450 | 0.29 | % | 1,201 | 439,880 | 0.21 | % | 922 | |||||||||||||||||||||||||||||||||||||||||
|
Time deposits >$100,000
|
616,171 | 1.33 | % | 8,215 | 704,332 | 1.93 | % | 13,598 | 641,516 | 1.30 | % | 8,356 | |||||||||||||||||||||||||||||||||||||||||
|
Other time deposits
|
239,990 | 0.64 | % | 1,535 | 260,741 | 0.73 | % | 1,901 | 275,904 | 0.38 | % | 1,061 | |||||||||||||||||||||||||||||||||||||||||
|
Total interest-bearing deposits
|
3,711,467 | 0.44 | % | 16,301 | 3,387,888 | 0.74 | % | 25,050 | 3,256,213 | 0.45 | % | 14,491 | |||||||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 71,955 | 1.42 | % | 1,022 | 209,613 | 2.54 | % | 5,324 | 222,891 | 2.11 | % | 4,703 | |||||||||||||||||||||||||||||||||||||||||
| Long-term borrowings | 114,490 | 1.96 | % | 2,239 | 123,035 | 2.86 | % | 3,529 | 183,973 | 2.49 | % | 4,583 | |||||||||||||||||||||||||||||||||||||||||
|
Total interest-bearing liabilities
|
3,897,912 | 0.50 | % | 19,562 | 3,720,536 | 0.91 | % | 33,903 | 3,663,077 | 0.65 | % | 23,777 | |||||||||||||||||||||||||||||||||||||||||
|
Noninterest-bearing checking accounts
|
1,932,823 | 1,436,329 | 1,260,598 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total sources of funds
|
5,830,735 | 0.34 | % | 5,156,865 | 0.66 | % | 4,923,675 | 0.48 | % | ||||||||||||||||||||||||||||||||||||||||||||
|
Other liabilities
|
60,731 | 57,359 | 42,165 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Shareholders’ equity
|
874,532 | 812,823 | 727,920 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$ | 6,765,998 | $ | 6,027,047 | $ | 5,693,760 | |||||||||||||||||||||||||||||||||||||||||||||||
|
Net yield on interest-earning assets and net interest income
|
3.54 | % | $ | 218,122 | 3.97 | % | $ | 216,204 | 4.06 | % | $ | 207,430 | |||||||||||||||||||||||||||||||||||||||||
|
Net yield on interest-earning assets and net interest income – tax-equivalent (3)
|
3.56 | % | $ | 219,590 | 4.00 | % | $ | 217,845 | 4.09 | % | $ | 209,024 | |||||||||||||||||||||||||||||||||||||||||
|
Interest rate spread
|
3.36 | % | 3.68 | % | 3.87 | % | |||||||||||||||||||||||||||||||||||||||||||||||
|
Average prime rate
|
3.54 | % | 5.28 | % | 4.91 | % | |||||||||||||||||||||||||||||||||||||||||||||||
|
61
|
||||||||
| Table 3 Volume and Rate Variance Analysis | |||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2020 | Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||
| Change Attributable to | Change Attributable to | ||||||||||||||||||||||||||||||||||
| ($ in thousands) |
Changes
in Volumes |
Changes
in Rates |
Total
Increase (Decrease) |
Changes
in Volumes |
Changes
in Rates |
Total
Increase (Decrease) |
|||||||||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||||||||
| Loans | $ | 17,128 | (24,813) | (7,685) | 9,310 | 2,865 | 12,175 | ||||||||||||||||||||||||||||
| Taxable securities | 6,055 | (5,507) | 548 | 7,952 | 1,291 | 9,243 | |||||||||||||||||||||||||||||
| Non-taxable securities | 50 | (332) | (282) | (566) | 91 | (475) | |||||||||||||||||||||||||||||
| Short-term investments, primarily overnight funds | 1,658 | (6,662) | (5,004) | (2,979) | 936 | (2,043) | |||||||||||||||||||||||||||||
| Total interest income | 24,891 | (37,314) | (12,423) | 13,717 | 5,183 | 18,900 | |||||||||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||||||||
| Interest bearing checking accounts | 173 | (323) | (150) | 20 | 451 | 471 | |||||||||||||||||||||||||||||
| Money market accounts | 1,240 | (3,600) | (2,360) | 419 | 3,310 | 3,729 | |||||||||||||||||||||||||||||
| Savings accounts | 106 | (596) | (490) | (51) | 330 | 279 | |||||||||||||||||||||||||||||
| Time deposits >$100,000 | (1,439) | (3,944) | (5,383) | 1,016 | 4,229 | 5,245 | |||||||||||||||||||||||||||||
| Other time deposits | (142) | (224) | (366) | (84) | 919 | 835 | |||||||||||||||||||||||||||||
| Total interest-bearing deposits | (62) | (8,687) | (8,749) | 1,320 | 9,239 | 10,559 | |||||||||||||||||||||||||||||
| Short-term borrowings | (2,726) | (1,577) | (4,303) | (309) | 930 | 621 | |||||||||||||||||||||||||||||
| Long-term borrowings | (213) | (1,076) | (1,289) | (1,626) | 572 | (1,054) | |||||||||||||||||||||||||||||
| Total interest expense | (3,001) | (11,340) | (14,341) | (615) | 10,741 | 10,126 | |||||||||||||||||||||||||||||
| Net interest income | $ | 27,892 | (25,974) | 1,918 | 14,332 | (5,558) | 8,774 | ||||||||||||||||||||||||||||
| Table 4 Noninterest Income | ||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
|
Service charges on deposit accounts
|
$ | 11,098 | 12,970 | 12,690 | ||||||||||||||||
| Other service charges, commissions and fees - interchange income, net of interchange expense | 14,142 | 13,814 | 11,995 | |||||||||||||||||
| Other service charges, commissions, and fees - other | 5,955 | 5,667 | 4,493 | |||||||||||||||||
|
Fees from presold mortgage loans
|
14,183 | 3,944 | 2,735 | |||||||||||||||||
|
Commissions from sales of insurance and financial products
|
8,848 | 8,495 | 8,731 | |||||||||||||||||
|
SBA consulting fees
|
8,644 | 3,872 | 4,675 | |||||||||||||||||
|
SBA loan sale gains
|
7,973 | 8,275 | 10,366 | |||||||||||||||||
|
Bank-owned life insurance income
|
2,533 | 2,564 | 2,534 | |||||||||||||||||
|
Securities gains (losses), net
|
8,024 | 97 | — | |||||||||||||||||
|
Other gains (losses), net
|
(54) | (169) | 723 | |||||||||||||||||
|
Noninterest income
|
$ | 81,346 | 59,529 | 58,942 | ||||||||||||||||
| Non-GAAP adjustments - Exclude: | ||||||||||||||||||||
|
Securities (gains) losses, net
|
(8,024) | (97) | — | |||||||||||||||||
|
Other (gains) losses, net
|
54 | 169 | (723) | |||||||||||||||||
| Adjusted noninterest income | $ | 73,376 | 59,601 | 58,219 | ||||||||||||||||
|
62
|
||||||||
| Table 5 Noninterest Expenses | |||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Salaries | $ | 84,941 | 79,129 | 75,077 | |||||||||||||
| Employee benefits | 16,027 | 16,844 | 16,888 | ||||||||||||||
| Total personnel expense | 100,968 | 95,973 | 91,965 | ||||||||||||||
| Occupancy expense | 11,278 | 11,122 | 10,793 | ||||||||||||||
| Equipment related expenses | 4,285 | 5,023 | 5,627 | ||||||||||||||
| Merger and acquisition expenses | — | 192 | 2,358 | ||||||||||||||
| Amortization of intangible assets | 3,956 | 4,858 | 5,917 | ||||||||||||||
| Dues and subscriptions expense (includes software licenses) | 4,764 | 4,250 | 3,431 | ||||||||||||||
| Data processing expense | 3,157 | 3,130 | 3,234 | ||||||||||||||
| Telephone and data lines | 2,893 | 3,057 | 3,024 | ||||||||||||||
| Marketing expense | 1,960 | 2,727 | 3,065 | ||||||||||||||
| Non-credit losses | 1,024 | 974 | 960 | ||||||||||||||
| Foreclosed property losses, net | 547 | 939 | 565 | ||||||||||||||
| Other operating expenses | 26,466 | 24,949 | 25,544 | ||||||||||||||
| Total | $ | 161,298 | 157,194 | 156,483 | |||||||||||||
| Table 6 Income Taxes | ||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Current | - Federal | $ | 27,799 | 19,920 | 19,188 | |||||||||||||||
| - State | 3,909 | 2,499 | 3,187 | |||||||||||||||||
| Deferred | - Federal | (8,893) | 1,572 | 1,658 | ||||||||||||||||
| - State | (1,161) | 239 | 156 | |||||||||||||||||
| Total tax expense | $ | 21,654 | 24,230 | 24,189 | ||||||||||||||||
| Effective tax rate | 21.0 | % | 20.8 | % | 21.3 | % | ||||||||||||||
|
63
|
||||||||
| Table 7 Distribution of Assets and Liabilities | |||||||||||||||||
| As of December 31, | |||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Assets | |||||||||||||||||
|
Interest-earning assets
|
|||||||||||||||||
|
Net loans
|
64 | % | 72 | % | 72 | % | |||||||||||
|
Securities available for sale
|
20 | 13 | 9 | ||||||||||||||
|
Securities held to maturity
|
2 | 1 | 2 | ||||||||||||||
|
Short-term investments
|
4 | 3 | 7 | ||||||||||||||
|
Total interest-earning assets
|
90 | 89 | 90 | ||||||||||||||
|
Noninterest-earning assets
|
|||||||||||||||||
|
Cash and due from banks
|
1 | 1 | 1 | ||||||||||||||
|
Premises and equipment
|
2 | 2 | 2 | ||||||||||||||
|
Intangible assets
|
3 | 4 | 4 | ||||||||||||||
|
Foreclosed real estate
|
— | — | — | ||||||||||||||
|
Bank-owned life insurance
|
1 | 2 | 2 | ||||||||||||||
|
Other assets
|
3 | 2 | 1 | ||||||||||||||
|
Total assets
|
100 | % | 100 | % | 100 | % | |||||||||||
| Liabilities and shareholders’ equity | |||||||||||||||||
| Noninterest-bearing checking accounts | 30 | % | 25 | % | 22 | % | |||||||||||
| Interest-bearing checking accounts | 16 | 15 | 16 | ||||||||||||||
| Money market accounts | 22 | 19 | 18 | ||||||||||||||
| Savings accounts | 7 | 7 | 7 | ||||||||||||||
| Time deposits of $100,000 or more | 8 | 10 | 12 | ||||||||||||||
| Other time deposits | 3 | 4 | 4 | ||||||||||||||
| Total deposits | 86 | 80 | 79 | ||||||||||||||
| Borrowings | 1 | 5 | 7 | ||||||||||||||
| Accrued expenses and other liabilities | 1 | 1 | 1 | ||||||||||||||
| Total liabilities | 88 | 86 | 87 | ||||||||||||||
| Shareholders’ equity | 12 | 14 | 13 | ||||||||||||||
|
Total liabilities and shareholders’ equity
|
100 | % | 100 | % | 100 | % | |||||||||||
| Table 8 Securities Portfolio Composition | |||||||||||||||||
| As of December 31, | |||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
|
Securities available for sale:
|
|||||||||||||||||
|
Government-sponsored enterprise securities
|
$ | 70,206 | 20,009 | 82,662 | |||||||||||||
|
Mortgage-backed securities
|
1,337,706 | 767,285 | 385,551 | ||||||||||||||
|
Corporate bonds
|
45,220 | 34,651 | 33,138 | ||||||||||||||
|
Total securities available for sale
|
1,453,132 | 821,945 | 501,351 | ||||||||||||||
|
Securities held to maturity:
|
|||||||||||||||||
|
Mortgage-backed securities
|
29,959 | 41,423 | 52,048 | ||||||||||||||
|
State and local governments
|
137,592 | 26,509 | 49,189 | ||||||||||||||
|
Total securities held to maturity
|
167,551 | 67,932 | 101,237 | ||||||||||||||
|
Total securities
|
$ | 1,620,683 | 889,877 | 602,588 | |||||||||||||
|
Average total securities during year
|
$ | 1,002,008 | 751,635 | 470,301 | |||||||||||||
|
64
|
||||||||
| Table 9 Securities Portfolio Maturity Schedule | |||||||||||||||||
| As of December 31, | |||||||||||||||||
| 2020 | |||||||||||||||||
| ($ in thousands) |
Book
Value |
Fair
Value |
Book
Yield (1) |
||||||||||||||
| Securities available for sale: | |||||||||||||||||
|
Government-sponsored enterprise securities
|
|||||||||||||||||
|
Due after five but within ten years
|
$ | 60,016 | 60,280 | 1.14 | % | ||||||||||||
|
Due after ten years
|
10,000 | 9,926 | 1.24 | % | |||||||||||||
|
Total
|
70,016 | 70,206 | 1.15 | % | |||||||||||||
|
Mortgage-backed securities (2)
|
|||||||||||||||||
|
Due within one year
|
12,423 | 12,593 | 0.72 | % | |||||||||||||
|
Due after one but within five years
|
637,867 | 654,200 | 1.75 | % | |||||||||||||
|
Due after five but within ten years
|
498,645 | 500,402 | 1.43 | % | |||||||||||||
|
Due after ten years
|
170,063 | 170,511 | 1.46 | % | |||||||||||||
|
Total
|
1,318,998 | 1,337,706 | 1.58 | % | |||||||||||||
|
Corporate debt securities
|
|||||||||||||||||
|
Due after one but within five years
|
28,670 | 30,265 | 3.46 | % | |||||||||||||
|
Due after five but within ten years
|
14,000 | 14,120 | 4.12 | % | |||||||||||||
|
Due after ten years
|
1,000 | 835 | 2.47 | % | |||||||||||||
|
Total
|
43,670 | 45,220 | 3.65 | % | |||||||||||||
| Total securities available for sale | |||||||||||||||||
|
Due within one year
|
12,423 | 12,593 | 0.72 | % | |||||||||||||
|
Due after one but within five years
|
666,537 | 684,465 | 1.82 | % | |||||||||||||
|
Due after five but within ten years
|
572,661 | 574,802 | 1.47 | % | |||||||||||||
|
Due after ten years
|
181,063 | 181,272 | 1.45 | % | |||||||||||||
|
Total
|
$ | 1,432,684 | $ | 1,453,132 | 1.62 | % | |||||||||||
|
Securities held to maturity:
|
|||||||||||||||||
|
Mortgage-backed securities (2)
|
|||||||||||||||||
|
Due after one but within five years
|
$ | 29,959 | 30,900 | 1.82 | % | ||||||||||||
|
Total
|
29,959 | 30,900 | 1.82 | % | |||||||||||||
|
State and local governments
|
|||||||||||||||||
|
Due within one year
|
2,087 | 2,101 | 3.75 | % | |||||||||||||
|
Due after one but within five years
|
2,915 | 3,008 | 4.59 | % | |||||||||||||
|
Due after five but within ten years
|
3,418 | 3,536 | 2.70 | % | |||||||||||||
|
Due after ten years
|
129,172 | 131,189 | 2.08 | % | |||||||||||||
|
Total securities held to maturity
|
137,592 | 139,834 | 2.17 | % | |||||||||||||
| Total securities held to maturity | |||||||||||||||||
|
Due within one year
|
2,087 | 2,101 | 3.75 | % | |||||||||||||
|
Due after one but within five years
|
32,874 | 33,908 | 2.07 | % | |||||||||||||
|
Due after five but within ten years
|
3,418 | 3,536 | 2.70 | % | |||||||||||||
|
Due after ten years
|
129,172 | 131,189 | 2.08 | % | |||||||||||||
|
Total
|
$ | 167,551 | 170,734 | 2.11 | % | ||||||||||||
|
65
|
||||||||
| Table 10 Loan Portfolio Composition | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | Amount |
% of
Total Loans |
Amount |
% of
Total Loans |
Amount |
% of
Total Loans |
Amount |
% of
Total Loans |
Amount |
% of
Total Loans |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ | 782,549 | 17 | % | $ | 504,271 | 11 | % | $ | 457,037 | 11 | % | $ | 381,130 | 10 | % | $ | 261,813 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||
|
Real estate – construction, land development & other land loans
|
570,672 | 12 | % | 530,866 | 12 | % | 518,976 | 12 | % | 539,020 | 13 | % | 354,667 | 13 | % | |||||||||||||||||||||||||||||||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
972,378 | 21 | % | 1,105,014 | 25 | % | 1,054,176 | 25 | % | 972,772 | 24 | % | 750,679 | 28 | % | |||||||||||||||||||||||||||||||||||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
306,256 | 6 | % | 337,922 | 8 | % | 359,162 | 8 | % | 379,978 | 9 | % | 239,105 | 9 | % | |||||||||||||||||||||||||||||||||||||||||||||||
|
Real estate – mortgage – commercial and other
|
2,049,203 | 43 | % | 1,917,280 | 43 | % | 1,787,022 | 42 | % | 1,696,107 | 42 | % | 1,049,460 | 39 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer loans | 53,955 | 1 | % | 56,172 | 1 | % | 71,392 | 2 | % | 74,348 | 2 | % | 55,037 | 2 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans, gross | 4,735,013 | 100 | % | 4,451,525 | 100 | % | 4,247,765 | 100 | % | 4,043,355 | 100 | % | 2,710,761 | 100 | % | |||||||||||||||||||||||||||||||||||||||||||||||
|
Unamortized net deferred loan costs (fees)
|
(3,698) | 1,941 | 1,299 | (986) | (49) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 4,731,315 | 4,453,466 | 4,249,064 | 4,042,369 | 2,710,712 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
66
|
||||||||
| Table 11 Loan Maturities | ||||||||||||||||||||||||||||||||||||||||||||
| As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
|
Due within
one year |
Due after one year but
within five years |
Due after five years but
within fifteen years |
Due after fifteen
years |
Total | ||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||||||
| Variable Rate Loans: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial, financial, and agricultural | $ | 66,551 | 7.31 | % | $ | 45,998 | 5.32 | % | $ | 48,787 | 5.68 | % | $ | 562 | 5.02 | % | $ | 161,898 | 6.25 | % | ||||||||||||||||||||||||
| Real estate – construction, land development & other land loans | 80,705 | 4.68 | % | 53,802 | 4.05 | % | 1,750 | 4.39 | % | 10,959 | 5.25 | % | 147,216 | 4.49 | % | |||||||||||||||||||||||||||||
| Real estate – mortgage – residential (1-4 family) first mortgages | 10,597 | 4.88 | % | 15,798 | 5.12 | % | 28,339 | 4.44 | % | 153,380 | 3.71 | % | 208,114 | 3.92 | % | |||||||||||||||||||||||||||||
| Real estate – mortgage – home equity loans / lines of credit | 13,134 | 3.97 | % | 57,034 | 4.02 | % | 211,972 | 3.61 | % | 317 | 3.86 | % | 282,457 | 3.70 | % | |||||||||||||||||||||||||||||
| Real estate – mortgage – commercial and other | 59,494 | 3.39 | % | 165,134 | 3.42 | % | 63,535 | 3.52 | % | 98,466 | 4.76 | % | 386,629 | 3.77 | % | |||||||||||||||||||||||||||||
| Consumer loans | 2,898 | 4.01 | % | 20,029 | 8.66 | % | 65 | 12.54 | % | 1,694 | 5.64 | % | 24,686 | 7.90 | % | |||||||||||||||||||||||||||||
| Total at variable rates | 233,379 | 5.06 | % | 357,795 | 4.22 | % | 354,448 | 3.95 | % | 265,378 | 4.18 | % | 1,211,000 | 4.28 | % | |||||||||||||||||||||||||||||
| Fixed Rate Loans: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial, financial, and agricultural | $ | 29,840 | 3.11 | % | $ | 389,178 | 2.28 | % | $ | 106,870 | 3.38 | % | $ | 81,385 | 2.83 | % | $ | 607,273 | 2.59 | % | ||||||||||||||||||||||||
| Real estate – construction, land development & other land loans | 112,719 | 3.66 | % | 171,095 | 4.76 | % | 138,081 | 4.22 | % | 918 | 3.40 | % | 422,813 | 4.29 | % | |||||||||||||||||||||||||||||
| Real estate – mortgage – residential (1-4 family) first mortgages | 24,570 | 5.16 | % | 149,886 | 4.13 | % | 127,953 | 3.97 | % | 455,807 | 3.86 | % | 758,216 | 3.97 | % | |||||||||||||||||||||||||||||
| Real estate – mortgage – home equity loans / lines of credit | 42 | 4.91 | % | 5 | 5.50 | % | 22,419 | 2.90 | % | — | — | % | 22,466 | 2.90 | % | |||||||||||||||||||||||||||||
| Real estate – mortgage – commercial and other | 139,742 | 4.42 | % | 759,673 | 4.53 | % | 737,640 | 3.99 | % | 8,327 | 2.51 | % | 1,645,382 | 4.27 | % | |||||||||||||||||||||||||||||
| Consumer loans | 1,303 | 5.67 | % | 20,073 | 6.11 | % | 5,171 | 7.61 | % | 2,542 | 17.55 | % | 29,089 | 7.36 | % | |||||||||||||||||||||||||||||
| Total at fixed rates | 308,216 | 4.08 | % | 1,489,910 | 3.95 | % | 1,138,134 | 3.96 | % | 548,979 | 3.75 | % | 3,485,239 | 3.93 | % | |||||||||||||||||||||||||||||
| Subtotal | 541,595 | 4.50 | % | 1,847,705 | 4.00 | % | 1,492,582 | 3.94 | % | 814,357 | 3.89 | % | 4,696,239 | 4.02 | % | |||||||||||||||||||||||||||||
| Nonaccrual loans | 35,076 | — | — | — | 35,076 | |||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 576,671 | $ | 1,847,705 | $ | 1,492,582 | $ | 814,357 | $ | 4,731,315 | ||||||||||||||||||||||||||||||||||
|
67
|
||||||||
| Table 12 Nonperforming Assets | |||||||||||||||||||||||||||||
| As of December 31, | |||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
| Nonperforming assets | |||||||||||||||||||||||||||||
| Nonaccrual loans | $ | 35,076 | 24,866 | 22,575 | 20,968 | 27,468 | |||||||||||||||||||||||
| Restructured loans - accruing | 9,497 | 9,053 | 13,418 | 19,834 | 22,138 | ||||||||||||||||||||||||
| Accruing loans >90 days past due | — | — | — | — | — | ||||||||||||||||||||||||
| Total nonperforming loans | 44,573 | 33,919 | 35,993 | 40,802 | 49,606 | ||||||||||||||||||||||||
| Foreclosed properties | 2,424 | 3,873 | 7,440 | 12,571 | 9,532 | ||||||||||||||||||||||||
| Total nonperforming assets | $ | 46,997 | 37,792 | 43,433 | 53,373 | 59,138 | |||||||||||||||||||||||
| Purchased credit impaired loans not included above (1) | $ | 8,591 | 12,664 | 17,393 | 23,165 | — | |||||||||||||||||||||||
| Allowance for loan losses | $ | 52,388 | 21,398 | 21,039 | 23,298 | 23,781 | |||||||||||||||||||||||
| Total Loans | $ | 4,731,315 | 4,453,466 | 4,249,064 | 4,042,369 | 2,710,712 | |||||||||||||||||||||||
| Asset Quality Ratios | |||||||||||||||||||||||||||||
| Nonaccrual loans to total loans | 0.74 | % | 0.56 | % | 0.53 | % | 0.52 | % | 1.01 | % | |||||||||||||||||||
| Nonperforming loans to total loans | 0.94 | % | 0.76 | % | 0.85 | % | 1.01 | % | 1.83 | % | |||||||||||||||||||
| Nonperforming assets to total loans and foreclosed properties | 0.99 | % | 0.85 | % | 1.02 | % | 1.32 | % | 2.17 | % | |||||||||||||||||||
| Nonperforming assets to total assets | 0.64 | % | 0.62 | % | 0.74 | % | 0.96 | % | 1.64 | % | |||||||||||||||||||
| Allowance for loan losses to nonaccrual loans | 149.36 | % | 86.05 | % | 93.20 | % | 111.11 | % | 86.58 | % | |||||||||||||||||||
|
68
|
||||||||
| Table 12a Nonperforming Assets by Geographical Region | ||||||||||||||||||||
| As of December 31, 2020 | ||||||||||||||||||||
| ($ in thousands) |
Total Nonperforming
Loans |
Total Loans |
Nonperforming Loans to
Total Loans |
Total Foreclosed Properties | ||||||||||||||||
| Nonaccrual loans and Troubled Debt Restructurings (1) | ||||||||||||||||||||
| Eastern Region (NC) | $ | 5,388 | $ | 1,057,000 | 0.51% | $ | 545 | |||||||||||||
| Triangle Region (NC) | 5,338 | 982,000 | 0.54% | 483 | ||||||||||||||||
| Triad Region (NC) | 6,226 | 810,000 | 0.77% | 72 | ||||||||||||||||
| Charlotte Region (NC) | 1,238 | 358,000 | 0.35% | — | ||||||||||||||||
| Southern Piedmont Region (NC) | 3,244 | 274,000 | 1.18% | 106 | ||||||||||||||||
| Western Region (NC) | 3,225 | 601,000 | 0.54% | 23 | ||||||||||||||||
| South Carolina Region | 1,294 | 214,000 | 0.60% | 349 | ||||||||||||||||
| PPP Loans | — | 241,000 | —% | |||||||||||||||||
| Other | 18,620 | 194,000 | 9.60% | 846 | ||||||||||||||||
| Total nonaccrual loans and troubled debt restructurings | $ | 44,573 | $ | 4,731,000 | 0.94% | $ | 2,424 | |||||||||||||
| Table 13 Allocation of the Allowance for Loan Losses | ||||||||||||||||||||||||||||||||
| As of December 31, | ||||||||||||||||||||||||||||||||
| ($ in thousands) | 2020 |
% of
Loan Category |
2019 |
% of
Loan Category |
2018 |
% of
Loan Category |
2017 |
% of
Loan Category |
2016 |
% of
Loan Category |
||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ | 11,316 | 1.45 | % | 4,553 | 0.90 | % | 2,889 | 0.63 | % | 3,111 | 0.82 | % | 3,829 | 1.46 | % | ||||||||||||||||
|
Real estate – construction, land development
|
5,355 | 0.94 | % | 1,976 | 0.37 | % | 2,243 | 0.43 | % | 2,816 | 0.52 | % | 2,691 | 0.76 | % | |||||||||||||||||
| Real estate – residential (1-4 family) first mortgages | 8,048 | 0.83 | % | 3,832 | 0.35 | % | 5,197 | 0.49 | % | 6,147 | 0.63 | % | 7,704 | 1.03 | % | |||||||||||||||||
| Real estate – mortgage - home equity lines of credit | 2,375 | 0.78 | % | 1,127 | 0.33 | % | 1,665 | 0.46 | % | 1,827 | 0.48 | % | 2,420 | 1.01 | % | |||||||||||||||||
| Real estate – mortgage - commercial and other | 23,603 | 1.15 | % | 8,938 | 0.47 | % | 7,983 | 0.45 | % | 6,475 | 0.38 | % | 5,098 | 0.49 | % | |||||||||||||||||
| Consumer loans | 1,478 | 2.74 | % | 972 | 1.73 | % | 952 | 1.33 | % | 950 | 1.28 | % | 1,145 | 2.08 | % | |||||||||||||||||
|
Total allocated
|
52,175 | 21,398 | 20,929 | 21,326 | 22,887 | |||||||||||||||||||||||||||
|
Unallocated
|
213 | n/a | — | n/a | 110 | n/a | 1,972 | n/a | 894 | n/a | ||||||||||||||||||||||
|
Total
|
$ | 52,388 | 1.11 | % | 21,398 | 0.48 | % | 21,039 | 0.50 | % | 23,298 | 0.58 | % | 23,781 | 0.88 | % | ||||||||||||||||
| Note: "% of Loan Category" represents the Allowance for Loan Losses as a percent of the respective total loan categories presented in Table 10. | ||||||||||||||||||||||||||||||||
| n/a - not applicable | ||||||||||||||||||||||||||||||||
|
69
|
||||||||
| Table 14 Loan Loss and Recovery Experience | |||||||||||||||||||||||||||||
| As of December 31, | |||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
| Loans outstanding at end of year | $4,731,315 | 4,453,466 | 4,249,064 | 4,042,369 | 2,710,712 | ||||||||||||||||||||||||
| Average amount of loans outstanding | $4,702,743 | 4,346,331 | 4,161,838 | 3,420,939 | 2,603,327 | ||||||||||||||||||||||||
| Allowance for loan losses, at beginning of year | $ | 21,398 | 21,039 | 23,298 | 23,781 | 28,583 | |||||||||||||||||||||||
| Provision (reversal) for loan losses – non-covered | 35,039 | 2,263 | (3,589) | 723 | 2,109 | ||||||||||||||||||||||||
| Provision (reversal) for loan losses – covered | — | — | — | — | (2,132) | ||||||||||||||||||||||||
| Total provision (reversal) for loan losses | 35,039 | 2,263 | (3,589) | 723 | (23) | ||||||||||||||||||||||||
| 56,437 | 23,302 | 19,709 | 24,504 | 28,560 | |||||||||||||||||||||||||
| Loans charged off: | |||||||||||||||||||||||||||||
| Commercial, financial, and agricultural | (5,608) | (2,473) | (2,128) | (1,622) | (2,033) | ||||||||||||||||||||||||
| Real estate – construction, land development & other land loans | (51) | (553) | (158) | (589) | (1,101) | ||||||||||||||||||||||||
| Real estate – mortgage – residential (1-4 family) first mortgages | (478) | (657) | (1,734) | (2,641) | (3,894) | ||||||||||||||||||||||||
| Real estate – mortgage – home equity loans / lines of credit | (524) | (307) | (711) | (978) | (1,010) | ||||||||||||||||||||||||
| Real estate – mortgage – commercial and other | (968) | (1,556) | (1,459) | (1,182) | (1,088) | ||||||||||||||||||||||||
| Consumer loans | (873) | (757) | (781) | (799) | (1,288) | ||||||||||||||||||||||||
| Total charge-offs | (8,502) | (6,303) | (6,971) | (7,811) | (10,414) | ||||||||||||||||||||||||
| Recoveries of loans previously charged-off: | |||||||||||||||||||||||||||||
| Commercial, financial, and agricultural | 745 | 980 | 1,195 | 1,311 | 817 | ||||||||||||||||||||||||
| Real estate – construction, land development & other land loans | 1,552 | 1,275 | 4,097 | 2,579 | 2,690 | ||||||||||||||||||||||||
| Real estate – mortgage – residential (1-4 family) first mortgages | 754 | 705 | 833 | 1,076 | 1,207 | ||||||||||||||||||||||||
| Real estate – mortgage – home equity loans / lines of credit | 487 | 629 | 364 | 333 | 279 | ||||||||||||||||||||||||
| Real estate – mortgage – commercial and other | 621 | 575 | 1,503 | 1,027 | 1,286 | ||||||||||||||||||||||||
| Consumer loans | 294 | 235 | 309 | 279 | 406 | ||||||||||||||||||||||||
| Total recoveries | 4,453 | 4,399 | 8,301 | 6,605 | 6,685 | ||||||||||||||||||||||||
| Net (charge-offs) recoveries | (4,049) | (1,904) | 1,330 | (1,206) | (3,729) | ||||||||||||||||||||||||
| Allowance removed related to sold loans | — | — | — | — | (1,050) | ||||||||||||||||||||||||
| Allowance for loan losses, at end of year | $ | 52,388 | 21,398 | 21,039 | 23,298 | 24,831 | |||||||||||||||||||||||
| Covered net recoveries included above (1) | $ | — | — | — | — | 1,714 | |||||||||||||||||||||||
| Ratios: | |||||||||||||||||||||||||||||
| Total net charge-offs (recoveries) as a percent of average loans | 0.09 | % | 0.04 | % | (0.03 | %) | 0.04 | % | 0.14 | % | |||||||||||||||||||
| Allowance for loan losses as a percent of loans at end of year | 1.11 | % | 0.48 | % | 0.50 | % | 0.58 | % | 0.88 | % | |||||||||||||||||||
| Allowance for loan losses as a multiple of net charge-offs | 12.94x | 11.24x | n/m | 19.32x | 6.38x | ||||||||||||||||||||||||
| Provision (reversal) for loan losses as a percent of net charge-offs | 865.37% | 118.86% | n/m | 59.95 | % | (0.62 | %) | ||||||||||||||||||||||
| Recoveries of loans previously charged-off as a percent of loans charged-off | 52.38 | % | 69.79 | % | 119.08 | % | 84.56 | % | 64.19 | % | |||||||||||||||||||
|
70
|
||||||||
| Table 14a Loan Loss and Recovery Experience, continued | |||||||||||||||||||||||||||||
| As of December 31, | |||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
| Net loan (charge-offs) recoveries | |||||||||||||||||||||||||||||
| Commercial, financial, and agricultural | $ | (4,863) | (1,493) | (933) | (311) | (1,216) | |||||||||||||||||||||||
| Real estate – construction, land development & other land loans | 1,501 | 722 | 3,939 | 1,990 | 1,589 | ||||||||||||||||||||||||
| Real estate – mortgage – residential (1-4 family) first mortgages | 276 | 48 | (901) | (1,565) | (2,687) | ||||||||||||||||||||||||
| Real estate – mortgage – home equity loans / lines of credit | (37) | 322 | (347) | (645) | (731) | ||||||||||||||||||||||||
| Real estate – mortgage – commercial and other | (347) | (981) | 44 | (155) | 198 | ||||||||||||||||||||||||
| Consumer loans | (579) | (522) | (472) | (520) | (882) | ||||||||||||||||||||||||
| Total (charge-offs) recoveries | $ | (4,049) | (1,904) | 1,330 | (1,206) | (3,729) | |||||||||||||||||||||||
| Average loans: | |||||||||||||||||||||||||||||
| Commercial, financial, and agricultural | $ | 707,976 | 482,654 | 430,449 | 367,793 | 246,105 | |||||||||||||||||||||||
| Real estate – construction, land development & other land loans | 615,717 | 503,183 | 555,354 | 466,272 | 323,894 | ||||||||||||||||||||||||
| Real estate – mortgage – residential (1-4 family) first mortgages | 1,028,334 | 1,074,938 | 1,015,360 | 779,307 | 743,692 | ||||||||||||||||||||||||
| Real estate – mortgage – home equity loans / lines of credit | 316,593 | 346,331 | 366,416 | 333,397 | 238,082 | ||||||||||||||||||||||||
| Real estate – mortgage – commercial and other | 1,981,763 | 1,872,666 | 1,723,117 | 1,412,511 | 1,000,341 | ||||||||||||||||||||||||
| Consumer loans | 52,360 | 66,559 | 71,142 | 61,659 | 51,213 | ||||||||||||||||||||||||
| Total average loans | $ | 4,702,743 | 4,346,331 | 4,161,838 | 3,420,939 | 2,603,327 | |||||||||||||||||||||||
| Ratios: | |||||||||||||||||||||||||||||
| Total net charge-offs (recoveries) as a percent of average loans | 0.09 | % | 0.04 | % | (0.03 | %) | 0.04 | % | 0.14 | % | |||||||||||||||||||
| Net charge-offs (recoveries) by loan category as a percent of average loans: | |||||||||||||||||||||||||||||
| Commercial, financial, and agricultural | 0.69 | % | 0.31 | % | 0.22 | % | 0.08 | % | 0.49 | % | |||||||||||||||||||
| Real estate – construction, land development & other land loans | (0.24 | %) | (0.14 | %) | (0.71 | %) | (0.43 | %) | (0.49 | %) | |||||||||||||||||||
| Real estate – mortgage – residential (1-4 family) first mortgages | (0.03 | %) | — | % | 0.09 | % | 0.20 | % | 0.36 | % | |||||||||||||||||||
| Real estate – mortgage – home equity loans / lines of credit | 0.01 | % | (0.09 | %) | 0.09 | % | 0.19 | % | 0.31 | % | |||||||||||||||||||
| Real estate – mortgage – commercial and other | 0.02 | % | 0.05 | % | — | % | 0.01 | % | (0.02 | %) | |||||||||||||||||||
| Consumer loans | 1.11 | % | 0.78 | % | 0.66 | % | 0.84 | % | 1.72 | % | |||||||||||||||||||
|
71
|
||||||||
| Table 15 Average Deposits | |||||||||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
| ($ in thousands) |
Average
Amount |
Average
Rate |
Average
Amount |
Average
Rate |
Average
Amount |
Average
Rate |
|||||||||||||||||||||||||||||
|
Interest-bearing checking accounts
|
$ | 1,019,773 | 0.12 | % | $ | 891,766 | 0.15 | % | $ | 875,751 | 0.10 | % | |||||||||||||||||||||||
|
Money market accounts
|
1,367,851 | 0.34 | % | 1,111,599 | 0.63 | % | 1,023,162 | 0.32 | % | ||||||||||||||||||||||||||
|
Savings accounts
|
467,682 | 0.15 | % | 419,450 | 0.29 | % | 439,880 | 0.21 | % | ||||||||||||||||||||||||||
|
Time deposits >$100,000
|
616,171 | 1.33 | % | 704,332 | 1.93 | % | 641,516 | 1.30 | % | ||||||||||||||||||||||||||
|
Other time deposits
|
239,990 | 0.64 | % | 260,741 | 0.73 | % | 275,904 | 0.38 | % | ||||||||||||||||||||||||||
|
Total interest-bearing deposits
|
3,711,467 | 0.44 | % | 3,387,888 | 0.74 | % | 3,256,213 | 0.45 | % | ||||||||||||||||||||||||||
|
Noninterest-bearing checking accounts
|
1,932,823 | — | 1,436,329 | — | 1,260,598 | — | |||||||||||||||||||||||||||||
|
Total deposits
|
5,644,290 | 0.29 | % | 4,824,217 | 0.52 | % | 4,516,811 | 0.32 | % | ||||||||||||||||||||||||||
| Table 16 Maturities of Time Deposits | |||||||||||||||||||||||||||||
| As of December 31, 2020 | |||||||||||||||||||||||||||||
| ($ in thousands) |
3 Months
or Less |
Over 3 to 6
Months |
Over 6 to 12
Months |
Over 12
Months |
Total | ||||||||||||||||||||||||
| Time deposits of $100,000 or more | $ | 183,859 | 139,653 | 175,318 | 65,535 | 564,365 | |||||||||||||||||||||||
| Time deposits of $250,000 or more Included above | $ | 123,464 | 101,947 | 112,853 | 37,399 | 375,663 | |||||||||||||||||||||||
|
72
|
||||||||
| Table 17 Interest Rate Sensitivity Analysis | |||||||||||||||||||||||||||||
|
Repricing schedule for interest-earning assets and interest-bearing
liabilities held as of December 31, 2020 |
|||||||||||||||||||||||||||||
| ($ in thousands) |
3 Months
or Less |
Over 3 to 12
Months |
Total Within
12 Months |
Over 12
Months |
Total | ||||||||||||||||||||||||
| Earning assets: | |||||||||||||||||||||||||||||
|
Loans (1)
|
$ | 1,146,012 | 256,236 | 1,402,248 | 3,329,067 | 4,731,315 | |||||||||||||||||||||||
|
Securities available for sale (2)
|
66,359 | 187,407 | 253,766 | 1,199,366 | 1,453,132 | ||||||||||||||||||||||||
|
Securities held to maturity (2)
|
6,965 | 10,993 | 17,958 | 149,593 | 167,551 | ||||||||||||||||||||||||
|
Other earning assets, primarily short-term investments
|
321,692 | — | 321,692 | 17,671 | 339,363 | ||||||||||||||||||||||||
|
Total earning assets
|
$ | 1,541,028 | 454,636 | 1,995,664 | 4,695,697 | 6,691,361 | |||||||||||||||||||||||
| Percent of total earning assets | 23.03 | % | 6.79 | % | 29.82 | % | 70.18 | % | 100.00 | % | |||||||||||||||||||
| Cumulative percent of total earning assets | 23.03 | % | 29.82 | % | 29.82 | % | 100.00 | % | 100.00 | % | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
|
Interest-bearing checking accounts
|
$ | 1,172,022 | — | 1,172,022 | — | 1,172,022 | |||||||||||||||||||||||
|
Money market accounts
|
1,581,364 | — | 1,581,364 | — | 1,581,364 | ||||||||||||||||||||||||
|
Savings accounts
|
519,266 | — | 519,266 | — | 519,266 | ||||||||||||||||||||||||
|
Time deposits of $100,000 or more
|
183,859 | 314,971 | 498,830 | 65,535 | 564,365 | ||||||||||||||||||||||||
|
Other time deposits
|
52,285 | 130,603 | 182,888 | 43,679 | 226,567 | ||||||||||||||||||||||||
|
Borrowings
|
54,200 | — | 54,200 | 7,629 | 61,829 | ||||||||||||||||||||||||
|
Total interest-bearing liabilities
|
$ | 3,562,996 | 445,574 | 4,008,570 | 116,843 | 4,125,413 | |||||||||||||||||||||||
| Percent of total interest-bearing liabilities | 86.37 | % | 10.80 | % | 97.17 | % | 2.83 | % | 100.00 | % | |||||||||||||||||||
| Cumulative percent of total interest-bearing liabilities | 86.37 | % | 97.17 | % | 97.17 | % | 100.00 | % | 100.00 | % | |||||||||||||||||||
| Interest sensitivity gap | $ | (2,021,968) | 9,062 | (2,012,906) | 4,578,854 | 2,565,948 | |||||||||||||||||||||||
| Cumulative interest sensitivity gap | $ | (2,021,968) | (2,012,906) | (2,012,906) | 2,565,948 | 2,565,948 | |||||||||||||||||||||||
|
Cumulative interest sensitivity gap as a percent of total earning assets
|
(30.22 | %) | (30.08 | %) | (30.08 | %) | 38.35 | % | 38.35 | % | |||||||||||||||||||
|
Cumulative ratio of interest-sensitive assets to interest-sensitive liabilities
|
43.25 | % | 49.78 | % | 49.78 | % | 162.20 | % | 162.20 | % | |||||||||||||||||||
|
73
|
||||||||
| Table 18 Contractual Obligations and Other Commercial Commitments | ||||||||||||||||||||||||||||||||
| Payments Due by Period ($ in thousands) | ||||||||||||||||||||||||||||||||
|
Contractual Obligations
As of December 31, 2020 |
Total |
Less
than 1 Year |
1-3 Years | 4-5 Years | After 5 Years | |||||||||||||||||||||||||||
| Borrowings | $ | 61,829 | 1,129 | 3,228 | 2,096 | 55,376 | ||||||||||||||||||||||||||
| Operating leases | 26,736 | 2,245 | 3,505 | 2,714 | 18,272 | |||||||||||||||||||||||||||
| Time deposits | 790,932 | 681,719 | 84,493 | 24,046 | 674 | |||||||||||||||||||||||||||
| Non-qualified postretirement plan liabilities | 9,310 | 330 | 648 | 658 | 7,674 | |||||||||||||||||||||||||||
| Committed investment obligations | 6,342 | 6,342 | — | — | — | |||||||||||||||||||||||||||
| Estimated interest expense on borrowings and time deposits (1) | 22,568 | 4,565 | 3,940 | 3,021 | 11,042 | |||||||||||||||||||||||||||
| Total contractual cash obligations | $ | 917,717 | 696,330 | 95,814 | 32,535 | 93,038 | ||||||||||||||||||||||||||
| (1) Represents forecasted interest expense on borrowings and time deposits based on interest rates at December 31, 2020. Forecasts are based on the contractual maturity of each liability. | ||||||||||||||||||||||||||||||||
| Amount of Commitment Expiration Per Period ($ in thousands) | ||||||||||||||||||||||||||||||||
|
Other Commercial
Commitments As of December 31, 2020 |
Total
Amounts Committed |
Less
than 1 Year |
1-3 Years | 4-5 Years | After 5 Years | |||||||||||||||||||||||||||
|
Credit cards
|
$ | 145,669 | 72,835 | 72,834 | ||||||||||||||||||||||||||||
|
Lines of credit and loan commitments
|
1,275,354 | 560,702 | 254,859 | 58,619 | 401,174 | |||||||||||||||||||||||||||
|
Standby letters of credit
|
14,061 | 13,482 | 578 | 1 | — | |||||||||||||||||||||||||||
|
Total commercial commitments
|
$ | 1,435,084 | 647,019 | 328,271 | 58,620 | 401,174 | ||||||||||||||||||||||||||
|
74
|
||||||||
| Table 19 Market Risk Sensitive Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Expected Maturities of Market Sensitive Instruments Held
at December 31, 2020 Occurring in Indicated Year |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | 2021 | 2022 | 2023 | 2024 | 2025 | Beyond | Total |
Average
Interest Rate |
Estimated
Fair Value |
||||||||||||||||||||||||||||||||||||||||||||
|
Due from banks, interest-bearing
|
$ | 273,566 | — | — | — | — | — | 273,566 | 0.09 | % | $ | 273,566 | |||||||||||||||||||||||||||||||||||||||||
|
Presold mortgages in process of settlement
|
42,271 | — | — | — | — | — | 42,271 | 2.72 | % | 42,271 | |||||||||||||||||||||||||||||||||||||||||||
| SBA loans held for sale | 6,077 | — | — | — | — | — | 6,077 | 5.65 | % | 7,465 | |||||||||||||||||||||||||||||||||||||||||||
|
Debt Securities - at amortized cost (1) (2)
|
262,195 | 260,431 | 261,928 | 234,584 | 237,617 | 343,480 | 1,600,235 | 1.68 | % | 1,623,866 | |||||||||||||||||||||||||||||||||||||||||||
|
Loans – fixed (3) (4)
|
308,216 | 539,822 | 308,930 | 362,341 | 284,459 | 1,681,471 | 3,485,239 | 3.93 | % | 3,478,634 | |||||||||||||||||||||||||||||||||||||||||||
|
Loans – adjustable (3) (4)
|
233,379 | 134,730 | 95,279 | 76,133 | 54,141 | 617,338 | 1,211,000 | 4.28 | % | 1,199,875 | |||||||||||||||||||||||||||||||||||||||||||
|
Total
|
$ | 1,125,704 | 934,983 | 666,137 | 673,058 | 576,217 | 2,642,289 | 6,618,388 | 3.29 | % | $ | 6,625,677 | |||||||||||||||||||||||||||||||||||||||||
|
Interest-bearing checking accounts
|
$ | 1,172,022 | — | — | — | — | — | 1,172,022 | 0.08 | % | $ | 1,172,022 | |||||||||||||||||||||||||||||||||||||||||
|
Money market accounts
|
1,581,364 | — | — | — | — | — | 1,581,364 | 0.23 | % | 1,581,364 | |||||||||||||||||||||||||||||||||||||||||||
|
Savings accounts
|
519,266 | — | — | — | — | — | 519,266 | 0.10 | % | 519,266 | |||||||||||||||||||||||||||||||||||||||||||
|
Time deposits
|
681,719 | 63,423 | 21,070 | 8,217 | 15,829 | 674 | 790,932 | 0.67 | % | 792,665 | |||||||||||||||||||||||||||||||||||||||||||
|
Borrowings – fixed
|
1,129 | 1,237 | 1,991 | 1,047 | 1,049 | 1,178 | 7,631 | 1.68 | % | 7,893 | |||||||||||||||||||||||||||||||||||||||||||
|
Borrowings – adjustable
|
— | — | — | — | — | 54,198 | 54,198 | 2.20 | % | 45,428 | |||||||||||||||||||||||||||||||||||||||||||
|
Total
|
$ | 3,955,500 | 64,660 | 23,061 | 9,264 | 16,878 | 56,050 | 4,125,413 | 0.29 | % | $ | 4,118,638 | |||||||||||||||||||||||||||||||||||||||||
|
75
|
||||||||
| Table 20 Risk-Based and Leverage Capital Ratios | |||||||||||||||||
| As of December 31, | |||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Risk-Based and Leverage Capital | |||||||||||||||||
| Common Equity Tier I capital: | |||||||||||||||||
|
Shareholders’ equity
|
$ | 893,421 | 852,401 | 764,230 | |||||||||||||
|
Intangible assets, net of deferred tax liability
|
(239,702) | (236,636) | (240,625) | ||||||||||||||
|
Accumulated other comprehensive income adjustments
|
(14,350) | (5,123) | 11,961 | ||||||||||||||
|
Total Common Equity Tier I capital
|
639,369 | 610,642 | 535,566 | ||||||||||||||
| Tier I capital: | |||||||||||||||||
| Trust preferred securities eligible for Tier I capital treatment | 52,496 | 52,345 | 52,198 | ||||||||||||||
| Deductions from Tier I capital | — | — | — | ||||||||||||||
|
Total Tier I leverage capital
|
691,865 | 662,987 | 587,764 | ||||||||||||||
| Tier II capital: | |||||||||||||||||
| Allowable allowance for loan losses | 52,388 | 21,398 | 21,039 | ||||||||||||||
| Other Tier II capital | 582 | 546 | 625 | ||||||||||||||
|
Tier II capital additions
|
52,970 | 21,944 | 21,664 | ||||||||||||||
| Total capital | $ | 744,835 | 684,931 | 609,428 | |||||||||||||
| Total risk weighted assets | $ | 4,846,322 | 4,599,799 | 4,361,238 | |||||||||||||
| Adjusted fourth quarter average assets | $ | 7,001,834 | 5,924,020 | 5,612,092 | |||||||||||||
| Risk-based capital ratios: | |||||||||||||||||
| Common equity Tier I capital to Tier I risk adjusted assets | 13.19 | % | 13.28 | % | 12.28 | % | |||||||||||
|
Minimum required under Basel III
|
7.00 | % | 7.00 | % | 6.375 | % | |||||||||||
|
Fully phased-in minimum under Basel III
|
7.00 | % | 7.00 | % | 7.00 | % | |||||||||||
| Tier I capital to Tier I risk adjusted assets | 14.28 | % | 14.41 | % | 13.48 | % | |||||||||||
|
Minimum required under Basel III
|
8.50 | % | 8.50 | % | 7.875 | % | |||||||||||
|
Fully phased-in minimum under Basel III
|
8.50 | % | 8.50 | % | 8.50 | % | |||||||||||
| Total risk-based capital to Tier II risk-adjusted assets | 15.37 | % | 14.89 | % | 13.97 | % | |||||||||||
|
Minimum required under Basel III
|
10.50 | % | 10.50 | % | 9.875 | % | |||||||||||
|
Fully phased-in minimum under Basel III
|
10.50 | % | 10.50 | % | 10.50 | % | |||||||||||
| Leverage capital ratios: | |||||||||||||||||
| Tier I leverage capital to adjusted fourth quarter average assets | 9.88 | % | 11.19 | % | 10.47 | % | |||||||||||
|
Minimum required under Basel III
|
4.00 | % | 4.00 | % | 4.00 | % | |||||||||||
|
Fully phased-in minimum under Basel III
|
4.00 | % | 4.00 | % | 4.00 | % | |||||||||||
|
76
|
||||||||
| Table 21 Quarterly Financial Summary (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
|
($ in thousands except
per share data) |
Fourth
Quarter |
Third
Quarter |
Second
Quarter |
First
Quarter |
Fourth
Quarter |
Third
Quarter |
Second
Quarter |
First
Quarter |
|||||||||||||||||||||||||||||||||||||||
|
Income Statement Data
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Interest income, taxable equivalent
|
$ | 59,780 | 59,035 | 57,970 | 62,367 | 63,351 | 62,795 | 63,445 | 62,159 | ||||||||||||||||||||||||||||||||||||||
|
Interest expense
|
3,317 | 3,955 | 5,016 | 7,274 | 8,313 | 8,604 | 8,613 | 8,374 | |||||||||||||||||||||||||||||||||||||||
|
Net interest income, taxable equivalent
|
56,463 | 55,080 | 52,954 | 55,093 | 55,038 | 54,191 | 54,832 | 53,785 | |||||||||||||||||||||||||||||||||||||||
|
Taxable equivalent, adjustment
|
457 | 347 | 330 | 334 | 382 | 413 | 423 | 424 | |||||||||||||||||||||||||||||||||||||||
|
Net interest income
|
56,006 | 54,733 | 52,624 | 54,759 | 54,656 | 53,778 | 54,409 | 53,361 | |||||||||||||||||||||||||||||||||||||||
|
Provision (reversal) for loan losses
|
4,031 | 6,120 | 19,298 | 5,590 | 3,176 | (1,105) | (308) | 500 | |||||||||||||||||||||||||||||||||||||||
|
Net interest income after provision for losses
|
51,975 | 48,613 | 33,326 | 49,169 | 51,480 | 54,883 | 54,717 | 52,861 | |||||||||||||||||||||||||||||||||||||||
| Noninterest income - see Note | 19,996 | 21,452 | 26,193 | 13,705 | 14,662 | 15,156 | 15,634 | 14,078 | |||||||||||||||||||||||||||||||||||||||
|
Noninterest expense
|
41,882 | 40,439 | 38,901 | 40,076 | 39,891 | 38,446 | 40,084 | 38,774 | |||||||||||||||||||||||||||||||||||||||
|
Income before income taxes
|
30,089 | 29,626 | 20,618 | 22,798 | 26,251 | 31,593 | 30,267 | 28,165 | |||||||||||||||||||||||||||||||||||||||
|
Income taxes
|
6,441 | 6,329 | 4,266 | 4,618 | 5,368 | 6,574 | 6,408 | 5,880 | |||||||||||||||||||||||||||||||||||||||
|
Net income
|
23,648 | 23,297 | 16,352 | 18,180 | 20,883 | 25,019 | 23,859 | 22,285 | |||||||||||||||||||||||||||||||||||||||
|
Per Common Share Data
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Earnings per common share – basic
|
$ | 0.83 | 0.81 | 0.56 | 0.62 | 0.71 | 0.84 | 0.80 | 0.75 | ||||||||||||||||||||||||||||||||||||||
|
Earnings per common share – diluted
|
0.83 | 0.81 | 0.56 | 0.62 | 0.71 | 0.84 | 0.80 | 0.75 | |||||||||||||||||||||||||||||||||||||||
|
Cash dividends declared
|
0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.12 | 0.12 | 0.12 | |||||||||||||||||||||||||||||||||||||||
|
Market Price
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
High
|
34.78 | 25.20 | 29.65 | 40.00 | 41.34 | 37.65 | 39.49 | 39.82 | |||||||||||||||||||||||||||||||||||||||
|
Low
|
20.44 | 19.60 | 19.26 | 17.32 | 34.51 | 34.13 | 33.99 | 31.22 | |||||||||||||||||||||||||||||||||||||||
|
Close
|
33.83 | 20.93 | 25.08 | 23.08 | 39.91 | 35.90 | 36.42 | 34.76 | |||||||||||||||||||||||||||||||||||||||
|
Stated book value - common
|
31.26 | 30.70 | 29.95 | 29.69 | 28.80 | 28.20 | 27.43 | 26.50 | |||||||||||||||||||||||||||||||||||||||
|
Selected Average Balances
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Assets
|
$ | 7,240,685 | 6,904,112 | 6,727,762 | 6,183,098 | 6,159,232 | 6,021,979 | 5,994,595 | 5,945,049 | ||||||||||||||||||||||||||||||||||||||
|
Loans
|
4,771,446 | 4,785,848 | 4,738,702 | 4,512,893 | 4,419,982 | 4,354,477 | 4,329,866 | 4,280,272 | |||||||||||||||||||||||||||||||||||||||
|
Earning assets
|
6,640,732 | 6,294,556 | 6,102,012 | 5,595,734 | 5,560,099 | 5,440,014 | 5,417,284 | 5,372,766 | |||||||||||||||||||||||||||||||||||||||
|
Deposits
|
6,232,692 | 5,882,792 | 5,502,356 | 4,950,199 | 4,939,182 | 4,838,574 | 4,810,019 | 4,704,231 | |||||||||||||||||||||||||||||||||||||||
|
Interest-bearing liabilities
|
4,085,619 | 3,878,783 | 3,885,903 | 3,739,467 | 3,716,248 | 3,678,530 | 3,716,092 | 3,773,714 | |||||||||||||||||||||||||||||||||||||||
|
Shareholders’ equity
|
889,481 | 878,325 | 871,495 | 858,592 | 847,317 | 826,914 | 802,131 | 775,059 | |||||||||||||||||||||||||||||||||||||||
|
Ratios (annualized where applicable)
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Return on average assets
|
1.30 | % | 1.34 | % | 0.98 | % | 1.18 | % | 1.35 | % | 1.65 | % | 1.60 | % | 1.52 | % | |||||||||||||||||||||||||||||||
|
Return on average common equity
|
10.58 | % | 10.55 | % | 7.55 | % | 8.52 | % | 9.78 | % | 12.00 | % | 11.93 | % | 11.66 | % | |||||||||||||||||||||||||||||||
|
Equity to assets at end of period
|
12.26 | % | 12.47 | % | 12.60 | % | 13.52 | % | 13.87 | % | 13.76 | % | 13.56 | % | 13.03 | % | |||||||||||||||||||||||||||||||
|
Average loans to average deposits
|
76.56 | % | 81.35 | % | 86.12 | % | 91.17 | % | 89.49 | % | 90.00 | % | 90.02 | % | 90.99 | % | |||||||||||||||||||||||||||||||
|
Average earning assets to interest-bearing liabilities
|
162.54 | % | 162.28 | % | 157.03 | % | 149.64 | % | 149.62 | % | 147.89 | % | 145.78 | % | 142.37 | % | |||||||||||||||||||||||||||||||
|
Net interest margin
|
3.38 | % | 3.48 | % | 3.49 | % | 3.96 | % | 3.93 | % | 3.95 | % | 4.06 | % | 4.06 | % | |||||||||||||||||||||||||||||||
|
Allowance for loan losses to gross loans
|
1.11 | % | 1.02 | % | 0.89 | % | 0.54 | % | 0.48 | % | 0.44 | % | 0.48 | % | 0.49 | % | |||||||||||||||||||||||||||||||
|
Nonperforming loans as a percent of total loans
|
0.94 | % | 0.86 | % | 0.94 | % | 0.76 | % | 0.76 | % | 0.67 | % | 0.67 | % | 0.77 | % | |||||||||||||||||||||||||||||||
|
Nonperforming assets as a percent of total assets
|
0.64 | % | 0.63 | % | 0.69 | % | 0.60 | % | 0.62 | % | 0.56 | % | 0.57 | % | 0.65 | % | |||||||||||||||||||||||||||||||
|
Net charge-offs (recoveries) as a percent of average total loans
|
0.07 | % | (0.06) | % | 0.12 | % | 0.22 | % | 0.09 | % | 0.04 | % | — | % | 0.04 | % | |||||||||||||||||||||||||||||||
| Note: In the second quarter of 2020, the Company recorded $8.0 million in gains on the sale of available for sale securities, which are included in noninterest income for that quarter. | |||||||||||||||||||||||||||||||||||||||||||||||
|
77
|
||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
| Assets | |||||||||||
|
Cash and due from banks, noninterest-bearing
|
$ |
|
|
||||||||
|
Due from banks, interest-bearing
|
|
|
|||||||||
|
Total cash and cash equivalents
|
|
|
|||||||||
|
Securities available for sale
|
|
|
|||||||||
| Securities held to maturity (fair values of $170,734 in 2020 and $68,333 in 2019) |
|
|
|||||||||
|
Presold mortgages in process of settlement
|
|
|
|||||||||
| SBA loans held for sale |
|
|
|||||||||
|
Loans
|
|
|
|||||||||
|
Allowance for loan losses
|
(
|
(
|
|||||||||
| Net loans |
|
|
|||||||||
|
Premises and equipment
|
|
|
|||||||||
|
Operating right-of-use lease assets
|
|
|
|||||||||
|
Accrued interest receivable
|
|
|
|||||||||
|
Goodwill
|
|
|
|||||||||
|
Other intangible assets
|
|
|
|||||||||
|
Foreclosed properties
|
|
|
|||||||||
|
Bank-owned life insurance
|
|
|
|||||||||
|
Other assets
|
|
|
|||||||||
| Total assets | $ |
|
|
||||||||
|
Liabilities
|
|||||||||||
|
Deposits: Noninterest-bearing checking accounts
|
$ |
|
|
||||||||
|
Interest-bearing checking accounts
|
|
|
|||||||||
|
Money market accounts
|
|
|
|||||||||
|
Savings accounts
|
|
|
|||||||||
|
Time deposits of $100,000 or more
|
|
|
|||||||||
|
Other time deposits
|
|
|
|||||||||
|
Total deposits
|
|
|
|||||||||
|
Borrowings
|
|
|
|||||||||
|
Accrued interest payable
|
|
|
|||||||||
|
Operating lease liabilities
|
|
|
|||||||||
|
Other liabilities
|
|
|
|||||||||
|
Total liabilities
|
|
|
|||||||||
|
Commitments and contingencies (see Note 12)
|
|
|
|||||||||
|
Shareholders’ Equity
|
|||||||||||
|
Preferred stock, no par value per share. Authorized: 5,000,000 shares
|
|||||||||||
| Issued & outstanding: none in 2020 and 2019 |
|
|
|||||||||
|
Common stock, no par value per share. Authorized: 40,000,000 shares
|
|||||||||||
| Issued & outstanding: 28,579,335 shares in 2020 and 29,601,264 shares in 2019 |
|
|
|||||||||
|
Retained earnings
|
|
|
|||||||||
|
Stock in rabbi trust assumed in acquisition
|
(
|
(
|
|||||||||
|
Rabbi trust obligation
|
|
|
|||||||||
|
Accumulated other comprehensive income (loss)
|
|
|
|||||||||
|
Total shareholders’ equity
|
|
|
|||||||||
| Total liabilities and shareholders’ equity | $ |
|
|
||||||||
| ($ in thousands, except per share data) | 2020 | 2019 | 2018 | ||||||||||||||
|
Interest Income
|
|||||||||||||||||
|
Interest and fees on loans
|
$ |
|
|
|
|||||||||||||
|
Interest on investment securities:
|
|||||||||||||||||
|
Taxable interest income
|
|
|
|
||||||||||||||
|
Tax-exempt interest income
|
|
|
|
||||||||||||||
|
Other, principally overnight investments
|
|
|
|
||||||||||||||
|
Total interest income
|
|
|
|
||||||||||||||
|
Interest Expense
|
|||||||||||||||||
|
Savings, checking and money market accounts
|
|
|
|
||||||||||||||
|
Time deposits of $100,000 or more
|
|
|
|
||||||||||||||
|
Other time deposits
|
|
|
|
||||||||||||||
|
Borrowings
|
|
|
|
||||||||||||||
|
Total interest expense
|
|
|
|
||||||||||||||
|
Net interest income
|
|
|
|
||||||||||||||
|
Provision (reversal) for loan losses
|
|
|
(
|
||||||||||||||
|
Net interest income after provision for loan losses
|
|
|
|
||||||||||||||
|
Noninterest Income
|
|||||||||||||||||
|
Service charges on deposit accounts
|
|
|
|
||||||||||||||
|
Other service charges, commissions and fees
|
|
|
|
||||||||||||||
|
Fees from presold mortgage loans
|
|
|
|
||||||||||||||
|
Commissions from sales of insurance and financial products
|
|
|
|
||||||||||||||
|
SBA consulting fees
|
|
|
|
||||||||||||||
|
SBA loan sale gains
|
|
|
|
||||||||||||||
|
Bank-owned life insurance income
|
|
|
|
||||||||||||||
| Securities gains, net |
|
|
|
||||||||||||||
|
Other gains (losses), net
|
(
|
(
|
|
||||||||||||||
|
Total noninterest income
|
|
|
|
||||||||||||||
|
Noninterest Expenses
|
|||||||||||||||||
|
Salaries
|
|
|
|
||||||||||||||
|
Employee benefits
|
|
|
|
||||||||||||||
|
Total personnel expense
|
|
|
|
||||||||||||||
|
Occupancy expense
|
|
|
|
||||||||||||||
|
Equipment related expenses
|
|
|
|
||||||||||||||
|
Merger and acquisition expenses
|
|
|
|
||||||||||||||
|
Intangibles amortization
|
|
|
|
||||||||||||||
|
Foreclosed property losses, net
|
|
|
|
||||||||||||||
|
Other operating expenses
|
|
|
|
||||||||||||||
|
Total noninterest expenses
|
|
|
|
||||||||||||||
|
Income before income taxes
|
|
|
|
||||||||||||||
|
Income tax expense
|
|
|
|
||||||||||||||
|
Net income
|
$ |
|
|
|
|||||||||||||
|
Earnings per common share: Basic
|
$ |
|
|
|
|||||||||||||
|
Earnings per common share: Diluted
|
|
|
|
||||||||||||||
|
Dividends declared per common share
|
$ |
|
|
|
|||||||||||||
|
Weighted average common shares outstanding:
|
|||||||||||||||||
|
Basic
|
|
|
|
||||||||||||||
|
Diluted
|
|
|
|
||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Net income | $ |
|
|
|
|||||||||||||
|
Other comprehensive income (loss):
|
|||||||||||||||||
|
Unrealized gains (losses) on securities available for sale:
|
|||||||||||||||||
|
Unrealized holding gains (losses) arising during the period, pretax
|
|
|
(
|
||||||||||||||
|
Tax (expense) benefit
|
(
|
(
|
|
||||||||||||||
|
Reclassification to realized (gains) losses
|
(
|
(
|
|
||||||||||||||
|
Tax expense (benefit)
|
|
|
|
||||||||||||||
|
Postretirement plans:
|
|||||||||||||||||
| Net gain (loss) arising during period |
|
(
|
(
|
||||||||||||||
| Tax (expense) benefit |
(
|
|
|
||||||||||||||
|
Amortization of unrecognized net actuarial loss
|
|
|
|
||||||||||||||
|
Tax benefit
|
(
|
(
|
(
|
||||||||||||||
|
Other comprehensive income (loss)
|
|
|
(
|
||||||||||||||
|
Comprehensive income
|
$ |
|
|
|
|||||||||||||
| (In thousands, except per share) | Common Stock |
Retained
Earnings |
Stock in
rabbi trust assumed in acquisition |
Rabbi trust
obligation |
Accumulated
Other Comprehensive Income (Loss) |
Total
Shareholders’ Equity |
|||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
| Balances, January 1, 2018 |
|
$ |
|
|
(
|
|
(
|
|
|||||||||||||||||||||||||||||||||
| Net income |
|
|
|||||||||||||||||||||||||||||||||||||||
| Cash dividends declared ($0.40 per common share) |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||
| Change in Rabbi Trust Obligation |
|
(
|
|
||||||||||||||||||||||||||||||||||||||
| Stock option exercises |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Stock withheld for payment of taxes |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||
| Stock-based compensation |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||
| Balances, December 31, 2018 |
|
|
|
(
|
|
(
|
|
||||||||||||||||||||||||||||||||||
| Net income |
|
|
|||||||||||||||||||||||||||||||||||||||
| Cash dividends declared ($0.54 per common share) |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||
| Change in Rabbi Trust Obligation |
|
(
|
|
||||||||||||||||||||||||||||||||||||||
| Equity issued related to acquisition earn-out |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Stock repurchases |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||
| Stock option exercises |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Stock withheld for payment of taxes |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||
| Stock-based compensation |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Other comprehensive income |
|
|
|||||||||||||||||||||||||||||||||||||||
| Balances, December 31, 2019 |
|
|
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||
| Net income |
|
|
|||||||||||||||||||||||||||||||||||||||
| Cash dividends declared ($0.72 per common share) |
(
|
(
|
|||||||||||||||||||||||||||||||||||||||
| Change in Rabbi Trust Obligation |
|
(
|
|
||||||||||||||||||||||||||||||||||||||
| Equity issued related to acquisition |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Stock repurchases |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||
| Stock withheld for payment of taxes |
(
|
(
|
(
|
||||||||||||||||||||||||||||||||||||||
| Stock-based compensation |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Other comprehensive income |
|
|
|||||||||||||||||||||||||||||||||||||||
| Balances, December 31, 2020 |
|
$ |
|
|
(
|
|
|
|
|||||||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Cash Flows From Operating Activities | |||||||||||||||||
| Net income | $ |
|
|
|
|||||||||||||
| Reconciliation of net income to net cash provided by operating activities: | |||||||||||||||||
| Provision (reversal) for loan losses |
|
|
(
|
||||||||||||||
| Net security premium amortization |
|
|
|
||||||||||||||
| Loan discount accretion |
(
|
(
|
(
|
||||||||||||||
| Other purchase accounting accretion and amortization, net |
|
(
|
(
|
||||||||||||||
| Foreclosed property losses and write-downs, net |
|
|
|
||||||||||||||
| Gains on securities available for sale |
(
|
(
|
|
||||||||||||||
| Other losses (gains) |
|
|
(
|
||||||||||||||
| Bank-owned life insurance income |
(
|
(
|
(
|
||||||||||||||
| Decrease (increase) in net deferred loan costs |
|
(
|
(
|
||||||||||||||
| Depreciation of premises and equipment |
|
|
|
||||||||||||||
| Amortization of operating lease right-of-use assets |
|
|
|
||||||||||||||
| Repayments of lease obligations |
(
|
(
|
|
||||||||||||||
| Stock-based compensation expense |
|
|
|
||||||||||||||
| Amortization of intangible assets |
|
|
|
||||||||||||||
| Amortization of SBA servicing assets |
|
|
|
||||||||||||||
| Gains from sale of presold mortgage and SBA loans |
(
|
(
|
(
|
||||||||||||||
| Originations of presold mortgage loans in process of settlement |
(
|
(
|
(
|
||||||||||||||
| Proceeds from sales of presold mortgage loans in process of settlement |
|
|
|
||||||||||||||
| Origination of SBA loans for sale |
(
|
(
|
(
|
||||||||||||||
| Proceeds from sales of SBA loans |
|
|
|
||||||||||||||
| Increase in accrued interest receivable |
(
|
(
|
(
|
||||||||||||||
| (Increase) decrease in other assets |
(
|
(
|
|
||||||||||||||
| (Decrease) increase in accrued interest payable |
(
|
|
|
||||||||||||||
| (Decrease) increase in net deferred income tax liability |
(
|
|
|
||||||||||||||
| Increase (decrease) in other liabilities |
|
(
|
(
|
||||||||||||||
| Net cash provided by operating activities |
|
|
|
||||||||||||||
| Cash Flows From Investing Activities | |||||||||||||||||
| Purchases of securities available for sale |
(
|
(
|
(
|
||||||||||||||
| Purchases of securities held to maturity |
(
|
|
|
||||||||||||||
| Proceeds from maturities/issuer calls of securities available for sale |
|
|
|
||||||||||||||
| Proceeds from maturities/issuer calls of securities held to maturity |
|
|
|
||||||||||||||
| Proceeds from sales of securities available for sale |
|
|
|
||||||||||||||
| Redemptions (purchases) of FRB and FHLB stock, net |
|
|
(
|
||||||||||||||
| Net increase in loans |
(
|
(
|
(
|
||||||||||||||
| Proceeds from sales of foreclosed properties |
|
|
|
||||||||||||||
| Purchases of premises and equipment |
(
|
(
|
(
|
||||||||||||||
| Proceeds from sales of premises and equipment |
|
|
|
||||||||||||||
| Net cash paid in acquisition |
(
|
|
|
||||||||||||||
| Net cash used by investing activities |
(
|
(
|
(
|
||||||||||||||
| Cash Flows From Financing Activities | |||||||||||||||||
| Net increase in deposits |
|
|
|
||||||||||||||
| Net (decrease) increase in short-term borrowings |
(
|
(
|
|
||||||||||||||
| Proceeds from long-term borrowings |
|
|
|
||||||||||||||
| Payments on long-term borrowings |
(
|
(
|
(
|
||||||||||||||
| Cash dividends paid – common stock |
(
|
(
|
(
|
||||||||||||||
| Repurchases of common stock |
(
|
(
|
|
||||||||||||||
| Proceeds from stock option exercises |
|
|
|
||||||||||||||
| Payment of taxes related to stock withheld |
(
|
(
|
(
|
||||||||||||||
| Net cash provided by financing activities |
|
|
|
||||||||||||||
| Increase (decrease) in Cash and Cash Equivalents |
|
(
|
(
|
||||||||||||||
| Cash and Cash Equivalents, Beginning of Year |
|
|
|
||||||||||||||
| Cash and Cash Equivalents, End of Year | $ |
|
|
|
|||||||||||||
| Supplemental Disclosures of Cash Flow Information: | |||||||||||||||||
| Cash paid during the period for interest |
|
|
|
||||||||||||||
| Cash paid during the period for income taxes |
|
|
|
||||||||||||||
| Non-cash: Foreclosed loans transferred to foreclosed real estate |
|
|
|
||||||||||||||
| Non-cash: Unrealized gain (loss) on securities available for sale, net of taxes |
|
|
(
|
||||||||||||||
| Non-cash: Initial recognition of operating lease right-of-use assets and liabilities |
|
|
|
||||||||||||||
| Non-cash: Equity issued related to acquisitions |
|
|
|
||||||||||||||
| Non-cash: Loans acquired |
|
|
|
||||||||||||||
| Non-cash: Other assets acquired |
|
|
|
||||||||||||||
| Non-cash: Borrowings assumed |
|
|
|
||||||||||||||
| See accompanying notes to consolidated financial statements. | |||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
|
Amortized
Cost |
Fair
Value |
Unrealized |
Amortized
Cost |
Fair
Value |
Unrealized | ||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | Gains | (Losses) | Gains | (Losses) | |||||||||||||||||||||||||||||||||||||||||||
|
Securities available for sale:
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Government-sponsored enterprise securities
|
$ |
|
|
|
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||||||||||
|
Mortgage-backed securities
|
|
|
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
|
Corporate bonds
|
|
|
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
|
Total available for sale
|
|
|
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
|
Securities held to maturity:
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Mortgage-backed securities
|
|
|
|
|
|
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
|
State and local governments
|
|
|
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
|
Total held to maturity
|
$ |
|
|
|
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||||||||||
| ($ in thousands) |
Securities in an Unrealized
Loss Position for Less than 12 Months |
Securities in an Unrealized
Loss Position for More than 12 Months |
Total | ||||||||||||||||||||||||||||||||
| Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
||||||||||||||||||||||||||||||
|
Government-sponsored enterprise securities
|
$ |
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
Mortgage-backed securities
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Corporate bonds
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
State and local governments
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Total temporarily impaired securities
|
$ |
|
|
|
|
|
|
||||||||||||||||||||||||||||
| ($ in thousands) |
Securities in an Unrealized
Loss Position for Less than 12 Months |
Securities in an Unrealized
Loss Position for More than 12 Months |
Total | ||||||||||||||||||||||||||||||||
| Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
||||||||||||||||||||||||||||||
|
Government-sponsored enterprise securities
|
$ |
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
Mortgage-backed securities
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Corporate bonds
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
State and local governments
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Total temporarily impaired securities
|
$ |
|
|
|
|
|
|
||||||||||||||||||||||||||||
| Securities Available for Sale | Securities Held to Maturity | ||||||||||||||||||||||
| ($ in thousands) |
Amortized
Cost |
Fair
Value |
Amortized
Cost |
Fair
Value |
|||||||||||||||||||
| Debt securities | |||||||||||||||||||||||
| Due within one year | $ |
|
|
$ |
|
|
|||||||||||||||||
| Due after one year but within five years |
|
|
|
|
|||||||||||||||||||
| Due after five years but within ten years |
|
|
|
|
|||||||||||||||||||
| Due after ten years |
|
|
|
|
|||||||||||||||||||
| Mortgage-backed securities |
|
|
|
|
|||||||||||||||||||
| Total securities | $ |
|
|
$ |
|
|
|||||||||||||||||
| ($ in thousands) | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||
| Amount | Percentage | Amount | Percentage | ||||||||||||||||||||
| All loans: | |||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
% | $ |
|
|
% | |||||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
% |
|
|
% | |||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
% |
|
|
% | |||||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
% |
|
|
% | |||||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
% |
|
|
% | |||||||||||||||||
| Consumer loans |
|
|
% |
|
|
% | |||||||||||||||||
|
Subtotal
|
|
|
% |
|
|
% | |||||||||||||||||
|
Unamortized net deferred loan costs (fees)
|
(
|
|
|||||||||||||||||||||
|
Total loans
|
$ |
|
$ |
|
|||||||||||||||||||
| ($ in thousands) |
December 31,
2020 |
December 31,
2019 |
|||||||||
| Guaranteed portions of non-PPP SBA Loans included in table above | $ |
|
|
||||||||
| Unguaranteed portions of SBA Loans included in table above |
|
|
|||||||||
| Total non-PPP SBA loans included in the table above | $ |
|
|
||||||||
| Sold portions of SBA loans with servicing retained - not included in table above | $ |
|
|
||||||||
|
($ in thousands)
Purchased Credit Impaired Loans
|
For the Year Ended December 31,
2020 |
For the Year Ended December 31,
2019 |
For the Year Ended December 31,
2018 |
||||||||||||||
| Balance at beginning of period | $ |
|
|
|
|||||||||||||
| Change due to payments received and accretion |
(
|
(
|
(
|
||||||||||||||
| Change due to loan charge-offs |
(
|
(
|
(
|
||||||||||||||
| Transfers to foreclosed real estate |
|
|
(
|
||||||||||||||
| Other |
|
|
|
||||||||||||||
| Balance at end of period | $ |
|
|
|
|||||||||||||
|
($ in thousands)
Accretable Yield for PCI loans
|
For the Year Ended December 31,
2020 |
For the Year Ended December 31,
2019 |
For the Year Ended December 31,
2018 |
||||||||||||||
|
Balance at beginning of period
|
$ |
|
|
|
|||||||||||||
|
Accretion
|
(
|
(
|
(
|
||||||||||||||
|
Reclassification from (to) nonaccretable difference
|
|
|
|
||||||||||||||
|
Other, net
|
(
|
|
|
||||||||||||||
|
Balance at end of period
|
$ |
|
|
|
|||||||||||||
|
ASSET QUALITY DATA
($ in thousands)
|
December 31,
2020 |
December 31,
2019 |
|||||||||
| Nonperforming assets | |||||||||||
| Nonaccrual loans | $ |
|
|
||||||||
| Restructured loans - accruing |
|
|
|||||||||
| Accruing loans > 90 days past due |
|
|
|||||||||
| Total nonperforming loans |
|
|
|||||||||
| Foreclosed properties |
|
|
|||||||||
| Total nonperforming assets | $ |
|
|
||||||||
| Purchased credit impaired loans not included above (1) | $ |
|
|
||||||||
| ($ in thousands) |
December 31,
2020 |
December 31,
2019 |
|||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|||||||||
| Consumer loans |
|
|
|||||||||
| Total | $ |
|
|
||||||||
| ($ in thousands) |
Accruing
30-59 Days Past Due |
Accruing 60-
89 Days Past Due |
Accruing 90
Days or More Past Due |
Nonaccrual
Loans |
Accruing
Current |
Total Loans
Receivable |
|||||||||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Consumer loans |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Purchased credit impaired
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total | $ |
|
|
|
|
|
|
||||||||||||||||||||||||||||
| Unamortized net deferred loan (fees) costs |
(
|
||||||||||||||||||||||||||||||||||
| Total loans | $ |
|
|||||||||||||||||||||||||||||||||
| ($ in thousands) |
Accruing
30-59 Days Past Due |
Accruing 60-
89 Days Past Due |
Accruing 90
Days or More Past Due |
Nonaccrual
Loans |
Accruing
Current |
Total Loans
Receivable |
|||||||||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Consumer loans |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Purchased credit impaired
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total | $ |
|
|
|
|
|
|
||||||||||||||||||||||||||||
| Unamortized net deferred loan (fees) costs |
|
||||||||||||||||||||||||||||||||||
| Total loans | $ |
|
|||||||||||||||||||||||||||||||||
| ($ in thousands) |
Commercial,
Financial, and Agricultural |
Real Estate –
Construction, Land Development & Other Land Loans |
Real Estate –
Residential (1-4 Family) First Mortgages |
Real Estate
– Mortgage – Home Equity Lines of Credit |
Real Estate
– Mortgage – Commercial and Other |
Consumer loans | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||
| As of and for the year ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
|
Beginning balance
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Charge-offs
|
(
|
(
|
(
|
(
|
(
|
(
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
|
Recoveries
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Provisions
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Ending balance
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| Ending balances as of December 31, 2020: Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Collectively evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Purchased credit impaired
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| Loans receivable as of December 31, 2020: | |||||||||||||||||||||||||||||||||||||||||||||||
|
Ending balance – total
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| Unamortized net deferred loan (fees) costs |
(
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Total loans
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||||||
| Ending balances as of December 31, 2020: Loans | |||||||||||||||||||||||||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Collectively evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Purchased credit impaired
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| ($ in thousands) |
Commercial,
Financial, and Agricultural |
Real Estate –
Construction, Land Development & Other Land Loans |
Real Estate –
Residential (1-4 Family) First Mortgages |
Real Estate
– Mortgage – Home Equity Lines of Credit |
Real Estate
– Mortgage – Commercial and Other |
Consumer loans | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||
| As of and for the year ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
|
Beginning balance
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Charge-offs
|
(
|
(
|
(
|
(
|
(
|
(
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
|
Recoveries
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Provisions
|
|
(
|
(
|
(
|
|
|
(
|
|
|||||||||||||||||||||||||||||||||||||||
|
Ending balance
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| Ending balances as of December 31, 2019: Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Collectively evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Purchased credit impaired
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| Loans receivable as of December 31, 2019: | |||||||||||||||||||||||||||||||||||||||||||||||
|
Ending balance – total
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| Unamortized net deferred loan (fees) costs |
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Total loans
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||||||
| Ending balances as of December 31, 2019: Loans | |||||||||||||||||||||||||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Collectively evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Purchased credit impaired
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| ($ in thousands) |
Commercial,
Financial, and Agricultural |
Real Estate –
Construction, Land Development & Other Land Loans |
Real Estate
– Residential (1-4 Family) First Mortgages |
Real Estate
– Mortgage – Home Equity Lines of Credit |
Real Estate
– Mortgage – Commercial and Other |
Consumer loans |
Unallo-
cated |
Total | |||||||||||||||||||||||||||||||||||||||
| As of and for the year ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
|
Beginning balance
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Charge-offs
|
(
|
(
|
(
|
(
|
(
|
(
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
|
Recoveries
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Provisions
|
|
(
|
(
|
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||||||||||||
|
Ending balance
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| Ending balances as of December 31, 2018: Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Collectively evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Purchased credit impaired
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| Loans receivable as of December 31, 2018: | |||||||||||||||||||||||||||||||||||||||||||||||
|
Ending balance – total
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| Unamortized net deferred loan (fees) costs |
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Total loans
|
|
||||||||||||||||||||||||||||||||||||||||||||||
| Ending balances as of December 31, 2018: Loans | |||||||||||||||||||||||||||||||||||||||||||||||
|
Individually evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Collectively evaluated for impairment
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Purchased credit impaired
|
$ |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| ($ in thousands) |
Recorded
Investment |
Unpaid
Principal Balance |
Related
Allowance |
Average
Recorded Investment |
|||||||||||||||||||
|
Impaired loans with no related allowance recorded:
|
|||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
— |
|
||||||||||||||||||
|
Real estate – mortgage – construction, land development & other land loans
|
|
|
— |
|
|||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
— |
|
|||||||||||||||||||
|
Real estate – mortgage –home equity loans / lines of credit
|
|
|
— |
|
|||||||||||||||||||
|
Real estate – mortgage –commercial and other
|
|
|
— |
|
|||||||||||||||||||
| Consumer loans |
|
|
— |
|
|||||||||||||||||||
|
Total impaired loans with no allowance
|
$ |
|
|
— |
|
||||||||||||||||||
|
Impaired loans with an allowance recorded:
|
|||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
|
|
||||||||||||||||||
|
Real estate – mortgage – construction, land development & other land loans
|
|
|
|
|
|||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
|
|||||||||||||||||||
|
Real estate – mortgage –home equity loans / lines of credit
|
|
|
|
|
|||||||||||||||||||
|
Real estate – mortgage –commercial and other
|
|
|
|
|
|||||||||||||||||||
| Consumer loans |
|
|
|
|
|||||||||||||||||||
|
Total impaired loans with allowance
|
$ |
|
|
|
|
||||||||||||||||||
|
($ in thousands) |
Recorded
Investment |
Unpaid
Principal Balance |
Related
Allowance |
Average
Recorded Investment |
|||||||||||||||||||
|
Impaired loans with no related allowance recorded:
|
|||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
— |
|
||||||||||||||||||
|
Real estate – mortgage – construction, land development & other land loans
|
|
|
— |
|
|||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
— |
|
|||||||||||||||||||
|
Real estate – mortgage –home equity loans / lines of credit
|
|
|
— |
|
|||||||||||||||||||
|
Real estate – mortgage –commercial and other
|
|
|
— |
|
|||||||||||||||||||
| Consumer loans |
|
|
— |
|
|||||||||||||||||||
|
Total impaired loans with no allowance
|
$ |
|
|
— |
|
||||||||||||||||||
|
Impaired loans with an allowance recorded:
|
|||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
|
|
||||||||||||||||||
|
Real estate – mortgage – construction, land development & other land loans
|
|
|
|
|
|||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
|
|||||||||||||||||||
|
Real estate – mortgage –home equity loans / lines of credit
|
|
|
|
|
|||||||||||||||||||
|
Real estate – mortgage –commercial and other
|
|
|
|
|
|||||||||||||||||||
| Consumer loans |
|
|
|
|
|||||||||||||||||||
|
Total impaired loans with allowance
|
$ |
|
|
|
|
||||||||||||||||||
|
($ in thousands) |
Recorded
Investment |
Unpaid
Principal Balance |
Related
Allowance |
Average
Recorded Investment |
|||||||||||||||||||
|
Impaired loans with no related allowance recorded:
|
|||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
— |
|
||||||||||||||||||
|
Real estate – mortgage – construction, land development & other land loans
|
|
|
— |
|
|||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
— |
|
|||||||||||||||||||
|
Real estate – mortgage –home equity loans / lines of credit
|
|
|
— |
|
|||||||||||||||||||
|
Real estate – mortgage –commercial and other
|
|
|
— |
|
|||||||||||||||||||
| Consumer loans |
|
|
— |
|
|||||||||||||||||||
|
Total impaired loans with no allowance
|
$ |
|
|
— |
|
||||||||||||||||||
|
Impaired loans with an allowance recorded:
|
|||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
|
|
||||||||||||||||||
|
Real estate – mortgage – construction, land development & other land loans
|
|
|
|
|
|||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
|
|||||||||||||||||||
|
Real estate – mortgage –home equity loans / lines of credit
|
|
|
|
|
|||||||||||||||||||
|
Real estate – mortgage –commercial and other
|
|
|
|
|
|||||||||||||||||||
| Consumer loans |
|
|
|
|
|||||||||||||||||||
|
Total impaired loans with allowance
|
$ |
|
|
|
|
||||||||||||||||||
| Risk Grade | Description | |||||||
| Pass: | ||||||||
| 1 | Loans with virtually no risk, including cash secured loans. | |||||||
| 2 | Loans with documented significant overall financial strength. These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation. | |||||||
| 3 | Loans with documented satisfactory overall financial strength. These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances. | |||||||
| 4 | Loans to borrowers with acceptable financial condition. These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability. | |||||||
| 5 | Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management. Collateral is generally available and felt to provide reasonable coverage with realizable liquidation values in normal circumstances. Repayment performance is satisfactory. | |||||||
|
P
(Pass) |
Consumer loans (<$500,000) that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels. These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines. | |||||||
| Special Mention: | ||||||||
| 6 | Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Bank. | |||||||
| Classified: | ||||||||
| 7 | An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. | |||||||
| 8 | Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable. Loss appears imminent, but the exact amount and timing is uncertain. | |||||||
| 9 | Loans that are considered uncollectible and are in the process of being charged-off. This grade is a temporary grade assigned for administrative purposes until the charge-off is completed. | |||||||
|
F
(Fail) |
Consumer loans (<$500,000) with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc. | |||||||
| ($ in thousands) | Pass |
Special Mention
Loans |
Classified
Accruing Loans |
Classified
Nonaccrual Loans |
Total | ||||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
|
|
|
|||||||||||||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|
|
|
||||||||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
|
|
||||||||||||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|
|
|
||||||||||||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
|
|
||||||||||||||||||||||||
| Consumer loans |
|
|
|
|
|
||||||||||||||||||||||||
|
Purchased credit impaired
|
|
|
|
|
|
||||||||||||||||||||||||
|
Total
|
$ |
|
|
|
|
|
|||||||||||||||||||||||
| Unamortized net deferred loan (fees) costs |
(
|
||||||||||||||||||||||||||||
|
Total loans
|
|
||||||||||||||||||||||||||||
| ($ in thousands) | Pass |
Special Mention
Loans |
Classified
Accruing Loans |
Classified
Nonaccrual Loans |
Total | ||||||||||||||||||||||||
|
Commercial, financial, and agricultural
|
$ |
|
|
|
|
|
|||||||||||||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|
|
|
||||||||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
|
|
||||||||||||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|
|
|
||||||||||||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
|
|
||||||||||||||||||||||||
| Consumer loans |
|
|
|
|
|
||||||||||||||||||||||||
|
Purchased credit impaired
|
|
|
|
|
|
||||||||||||||||||||||||
|
Total
|
$ |
|
|
|
|
|
|||||||||||||||||||||||
| Unamortized net deferred loan (fees) costs |
|
||||||||||||||||||||||||||||
|
Total loans
|
|
||||||||||||||||||||||||||||
| ($ in thousands) | For the year ended December 31, 2020 | ||||||||||||||||
|
Number of
Contracts |
Pre-
Modification Restructured Balances |
Post-
Modification Restructured Balances |
|||||||||||||||
|
TDRs – Accruing
|
|||||||||||||||||
|
Commercial, financial, and agricultural
|
|
$ |
|
$ |
|
||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|
||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|
||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
||||||||||||||
| Consumer loans |
|
|
|
||||||||||||||
|
TDRs – Nonaccrual
|
|||||||||||||||||
|
Commercial, financial, and agricultural
|
|
|
|
||||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|
||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|
||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
||||||||||||||
| Consumer loans |
|
|
|
||||||||||||||
|
Total TDRs arising during period
|
|
$ |
|
$ |
|
||||||||||||
| ($ in thousands) | For the year ended December 31, 2019 | ||||||||||||||||
|
Number of
Contracts |
Pre-
Modification Restructured Balances |
Post-
Modification Restructured Balances |
|||||||||||||||
|
TDRs – Accruing
|
|||||||||||||||||
|
Commercial, financial, and agricultural
|
|
$ |
|
$ |
|
||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|
||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|
||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
||||||||||||||
| Consumer loans |
|
|
|
||||||||||||||
|
TDRs – Nonaccrual
|
|||||||||||||||||
|
Commercial, financial, and agricultural
|
|
|
|
||||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|
||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|
||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
||||||||||||||
| Consumer loans |
|
|
|
||||||||||||||
|
Total TDRs arising during period
|
|
$ |
|
$ |
|
||||||||||||
| ($ in thousands) | For the year ended December 31, 2018 | ||||||||||||||||
|
Number of
Contracts |
Pre-
Modification Restructured Balances |
Post-
Modification Restructured Balances |
|||||||||||||||
|
TDRs – Accruing
|
|||||||||||||||||
|
Commercial, financial, and agricultural
|
|
$ |
|
$ |
|
||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|
||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|
||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
||||||||||||||
| Consumer loans |
|
|
|
||||||||||||||
|
TDRs – Nonaccrual
|
|||||||||||||||||
|
Commercial, financial, and agricultural
|
|
|
|
||||||||||||||
|
Real estate – construction, land development & other land loans
|
|
|
|
||||||||||||||
|
Real estate – mortgage – residential (1-4 family) first mortgages
|
|
|
|
||||||||||||||
|
Real estate – mortgage – home equity loans / lines of credit
|
|
|
|
||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
||||||||||||||
| Consumer loans |
|
|
|
||||||||||||||
|
Total TDRs arising during period
|
|
$ |
|
$ |
|
||||||||||||
| ($ in thousands) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||||||||||||
|
Number of
Contracts |
Recorded
Investment |
Number of
Contracts |
Recorded
Investment |
Number of
Contracts |
Recorded
Investment |
||||||||||||||||||||||||||||||
|
Accruing TDRs that subsequently defaulted
|
|||||||||||||||||||||||||||||||||||
|
Real estate – mortgage – residential (1-4 family first mortgages)
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||||||||||||||||||||
|
Real estate – mortgage – commercial and other
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Total accruing TDRs that subsequently defaulted
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
| Land | $ |
|
|
||||||||
| Buildings |
|
|
|||||||||
| Furniture and equipment |
|
|
|||||||||
| Leasehold improvements |
|
|
|||||||||
| Total cost |
|
|
|||||||||
| Less accumulated depreciation and amortization |
(
|
(
|
|||||||||
| Total premises and equipment | $ |
|
|
||||||||
| December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
| ($ in thousands) |
Gross Carrying
Amount |
Accumulated
Amortization |
Gross Carrying
Amount |
Accumulated
Amortization |
||||||||||||||||||||||
| Amortizable intangible assets: | ||||||||||||||||||||||||||
| Customer lists | $ |
|
|
|
|
|||||||||||||||||||||
| Core deposit intangibles |
|
|
|
|
||||||||||||||||||||||
| SBA servicing asset |
|
|
|
|
||||||||||||||||||||||
| Other |
|
|
|
|
||||||||||||||||||||||
| Total | $ |
|
|
|
|
|||||||||||||||||||||
| Unamortizable intangible assets: | ||||||||||||||||||||||||||
| Goodwill | $ |
|
|
|||||||||||||||||||||||
| ($ in thousands) |
Estimated
Amortization Expense |
|||||||
| 2021 | $ |
|
||||||
| 2022 |
|
|||||||
| 2023 |
|
|||||||
| 2024 |
|
|||||||
| 2025 |
|
|||||||
| Thereafter |
|
|||||||
| Total | $ |
|
||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Current | - Federal | $ |
|
|
|
|||||||||||||||
| - State |
|
|
|
|||||||||||||||||
| Deferred | - Federal |
(
|
|
|
||||||||||||||||
| - State |
(
|
|
|
|||||||||||||||||
|
Total
|
$ |
|
|
|
||||||||||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
|
Deferred tax assets:
|
|||||||||||
|
Allowance for loan losses
|
$ |
|
|
||||||||
|
Excess book over tax pension plan cost
|
|
|
|||||||||
|
Deferred compensation
|
|
|
|||||||||
|
Federal & state net operating loss and tax credit carryforwards
|
|
|
|||||||||
|
Accruals, book versus tax
|
|
|
|||||||||
|
Pension liability adjustments
|
|
|
|||||||||
|
Foreclosed real estate
|
|
|
|||||||||
|
Basis differences in assets acquired in FDIC transactions
|
|
|
|||||||||
| Equity compensation |
|
|
|||||||||
|
Partnership investments
|
|
|
|||||||||
| Leases |
|
|
|||||||||
|
SBA servicing asset
|
|
|
|||||||||
|
All other
|
|
|
|||||||||
|
Gross deferred tax assets
|
|
|
|||||||||
|
Less: Valuation allowance
|
(
|
(
|
|||||||||
|
Net deferred tax assets
|
|
|
|||||||||
|
Deferred tax liabilities:
|
|||||||||||
|
Loan fees
|
(
|
(
|
|||||||||
|
Depreciable basis of fixed assets
|
(
|
(
|
|||||||||
|
Amortizable basis of intangible assets
|
(
|
(
|
|||||||||
|
FHLB stock dividends
|
(
|
(
|
|||||||||
|
Trust preferred securities
|
(
|
(
|
|||||||||
|
Purchase accounting adjustments
|
|
(
|
|||||||||
|
Unrealized gain on securities available for sale
|
(
|
(
|
|||||||||
|
Gross deferred tax liabilities
|
(
|
(
|
|||||||||
|
Net deferred tax liability - included in other liabilities
|
$ |
(
|
(
|
||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Tax provision at statutory rate | $ |
|
|
|
|||||||||||||
| Increase (decrease) in income taxes resulting from: | |||||||||||||||||
| Tax-exempt interest income |
(
|
(
|
(
|
||||||||||||||
| Low income housing tax credits |
(
|
(
|
(
|
||||||||||||||
| Bank-owned life insurance income |
(
|
(
|
(
|
||||||||||||||
| Non-deductible interest expense |
|
|
|
||||||||||||||
| State income taxes, net of federal benefit |
|
|
|
||||||||||||||
| Change in valuation allowance |
(
|
|
(
|
||||||||||||||
| Impact of tax reform |
|
(
|
|
||||||||||||||
| Other, net |
|
|
|
||||||||||||||
| Total | $ |
|
21654000 | $ |
|
$ |
|
||||||||||
| ($ in thousands) | |||||
| 2021 | $ |
|
|||
| 2022 |
|
||||
| 2023 |
|
||||
| 2024 |
|
||||
| 2025 |
|
||||
| Thereafter |
|
||||
| $ |
|
||||
| Description – 2020 | Due date | Call Feature | 2020 Amount | Interest Rate | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
7/24/2023 | None |
|
1.00% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
12/22/2023 | None |
|
1.25% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
1/15/2026 | None |
|
1.98% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
6/26/2028 | None |
|
0.25% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
7/17/2028 | None |
|
0.00% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
8/18/2028 | None |
|
1.00% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
8/22/2028 | None |
|
1.00% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
12/20/2028 | None |
|
0.50% fixed | ||||||||||||||||||||||
| Other Borrowing | 4/7/2022 | None |
|
1.00% fixed | ||||||||||||||||||||||
|
Trust Preferred Securities
|
1/23/2034 |
Quarterly by Company
beginning 1/23/2009 |
|
2.91% at 12/31/2020
adjustable rate 3 month LIBOR + 2.70% |
||||||||||||||||||||||
|
Trust Preferred Securities
|
6/15/2036 |
Quarterly by Company
beginning 6/15/2011 |
|
1.61% at 12/31/2020
adjustable rate 3 month LIBOR + 1.39% |
||||||||||||||||||||||
|
Trust Preferred Securities
|
1/7/2035 |
Quarterly by Company
beginning 1/7/2010 |
|
2.24% at 12/31/2020
adjustable rate 3 month LIBOR + 2.00% |
||||||||||||||||||||||
| Total borrowings / weighted average rate as of December 31, 2020 | $ |
|
|
|||||||||||||||||||||||
| Unamortized discount on acquired borrowings |
(
|
|||||||||||||||||||||||||
| Total borrowings | $ |
|
||||||||||||||||||||||||
| Description – 2019 | Due date | Call Feature | 2019 Amount | Interest Rate | ||||||||||||||||||||||
|
FHLB Term Note
|
1/30/2020 | None | $ |
|
1.70% fixed | |||||||||||||||||||||
|
FHLB Term Note
|
1/31/2020 | None |
|
1.70% fixed | ||||||||||||||||||||||
|
FHLB Term Note
|
1/31/2020 | None |
|
1.70% fixed | ||||||||||||||||||||||
|
FHLB Term Note
|
5/29/2020 | None |
|
1.62% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
7/24/2023 | None |
|
1.00% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
12/22/2023 | None |
|
1.25% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
1/15/2026 | None |
|
1.98% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
6/26/2028 | None |
|
0.25% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
7/17/2028 | None |
|
0.00% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
8/18/2028 | None |
|
1.00% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
8/22/2028 | None |
|
1.00% fixed | ||||||||||||||||||||||
|
FHLB Principal Reducing Credit
|
12/20/2028 | None |
|
0.50% fixed | ||||||||||||||||||||||
|
Trust Preferred Securities
|
1/23/2034 |
Quarterly by Company
beginning 1/23/2009 |
|
4.64% at 12/31/2019
adjustable rate 3 month LIBOR + 2.70% |
||||||||||||||||||||||
|
Trust Preferred Securities
|
6/15/2036 |
Quarterly by Company
beginning 6/15/2011 |
|
3.28% at 12/31/2019
adjustable rate 3 month LIBOR + 1.39% |
||||||||||||||||||||||
|
Trust Preferred Securities
|
1/7/2035 |
Quarterly by Company
beginning 1/7/2010 |
|
3.99% at 12/31/2019
adjustable rate 3 month LIBOR + 2.00% |
||||||||||||||||||||||
| Total borrowings / weighted average rate as of December 31, 2019 | $ |
|
|
|||||||||||||||||||||||
| Unamortized discount on acquired borrowings |
(
|
|||||||||||||||||||||||||
| Total borrowings | $ |
|
||||||||||||||||||||||||
| ($ in thousands) | |||||
| Year ending December 31: | |||||
| 2021 | $ |
|
|||
| 2022 |
|
||||
| 2023 |
|
||||
| 2024 |
|
||||
| 2025 |
|
||||
| Thereafter |
|
||||
| Total undiscounted lease payments |
|
||||
| Less effect of discounting |
(
|
||||
| Present value of estimated lease payments (lease liability) | $ |
|
|||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Change in benefit obligation | |||||||||||||||||
| Benefit obligation at beginning of year | $ |
|
|
|
|||||||||||||
| Service cost |
|
|
|
||||||||||||||
| Interest cost |
|
|
|
||||||||||||||
| Actuarial loss (gain) |
|
|
(
|
||||||||||||||
| Benefits paid |
(
|
(
|
(
|
||||||||||||||
| Benefit obligation at end of year |
|
|
|
||||||||||||||
| Change in plan assets | |||||||||||||||||
| Plan assets at beginning of year |
|
|
|
||||||||||||||
| Actual return on plan assets |
|
|
(
|
||||||||||||||
| Employer contributions |
|
|
|
||||||||||||||
| Benefits paid |
(
|
(
|
(
|
||||||||||||||
| Plan assets at end of year |
|
|
|
||||||||||||||
| Funded status at end of year | $ |
|
|
|
|||||||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
| Other assets | $ |
|
|
||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
| Net loss | $ |
(
|
(
|
||||||||
| Prior service cost |
|
|
|||||||||
| Amount recognized in AOCI before tax effect |
(
|
(
|
|||||||||
| Tax benefit |
|
|
|||||||||
| Net amount recognized as decrease to AOCI | $ |
(
|
(
|
||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
|
Accumulated other comprehensive loss at beginning of fiscal year
|
$ |
(
|
(
|
||||||||
| Net gain (loss) arising during period |
|
(
|
|||||||||
|
Amortization of unrecognized actuarial loss
|
|
|
|||||||||
|
Tax benefit of changes during the year, net
|
(
|
(
|
|||||||||
|
Accumulated other comprehensive loss at end of fiscal year
|
$ |
(
|
(
|
||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
|
Prepaid pension cost as of beginning of fiscal year
|
$ |
|
|
||||||||
|
Net periodic pension cost for fiscal year
|
(
|
(
|
|||||||||
|
Actual employer contributions
|
|
|
|||||||||
|
Prepaid pension asset as of end of fiscal year
|
$ |
|
|
||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Service cost – benefits earned during the period | $ |
|
|
|
|||||||||||||
| Interest cost on projected benefit obligation |
|
|
|
||||||||||||||
| Expected return on plan assets |
(
|
(
|
(
|
||||||||||||||
| Net amortization and deferral |
|
|
|
||||||||||||||
| Net periodic pension cost | $ |
|
|
|
|||||||||||||
| ($ in thousands) |
Estimated
benefit payments |
||||
| Year ending December 31, 2021 | $ |
|
|||
| Year ending December 31, 2022 |
|
||||
| Year ending December 31, 2023 |
|
||||
| Year ending December 31, 2024 |
|
||||
| Year ending December 31, 2025 |
|
||||
| Years ending December 31, 2026-2030 |
|
||||
| ($ in thousands) |
Total Fair Value at December 31,
2020 |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
|||||||||||||||||||
| Cash and cash equivalents | $ |
|
|
|
|
||||||||||||||||||
| Investment funds | |||||||||||||||||||||||
| Fixed income funds |
|
|
|
|
|||||||||||||||||||
| Total | $ |
|
|
|
|
||||||||||||||||||
| ($ in thousands) |
Total Fair Value at December 31,
2019 |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
|||||||||||||||||||
| Cash and cash equivalents | $ |
|
|
|
|
||||||||||||||||||
| Investment funds | |||||||||||||||||||||||
| Fixed income funds |
|
|
|
|
|||||||||||||||||||
| Total | $ |
|
|
|
|
||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Change in benefit obligation | |||||||||||||||||
| Projected benefit obligation at beginning of year | $ |
|
|
|
|||||||||||||
| Service cost |
|
|
|
||||||||||||||
| Interest cost |
|
|
|
||||||||||||||
| Actuarial (gain) loss |
|
|
(
|
||||||||||||||
| Benefits paid |
(
|
(
|
(
|
||||||||||||||
| Projected benefit obligation at end of year |
|
|
|
||||||||||||||
| Plan assets |
|
|
|
||||||||||||||
| Funded status at end of year | $ |
(
|
(
|
(
|
|||||||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
| Other liabilities | $ |
(
|
(
|
||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
| Net (loss) gain | $ |
(
|
|
||||||||
| Prior service cost |
|
|
|||||||||
| Amount recognized in AOCI before tax effect |
(
|
|
|||||||||
| Tax expense |
|
(
|
|||||||||
| Net amount recognized as (decrease) increase to AOCI | $ |
(
|
|
||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
| Accumulated other comprehensive income (loss) at beginning of fiscal year | $ |
|
|
||||||||
| Net (loss) gain arising during period |
(
|
(
|
|||||||||
| Prior service cost |
|
|
|||||||||
| Amortization of unrecognized actuarial gain |
(
|
(
|
|||||||||
| Amortization of prior service cost and transition obligation |
|
|
|||||||||
| Tax expense related to changes during the year, net |
|
|
|||||||||
| Accumulated other comprehensive income (loss) at end of fiscal year | $ |
(
|
|
||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
| Accrued liability as of beginning of fiscal year | $ |
(
|
(
|
||||||||
| Net periodic pension cost for fiscal year |
(
|
(
|
|||||||||
| Benefits paid |
|
|
|||||||||
| Accrued liability as of end of fiscal year | $ |
(
|
(
|
||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Service cost – benefits earned during the period | $ |
|
|
|
|||||||||||||
| Interest cost on projected benefit obligation |
|
|
|
||||||||||||||
| Net amortization and deferral |
(
|
(
|
(
|
||||||||||||||
| Net periodic pension cost | $ |
|
|
|
|||||||||||||
|
($ in thousands)
|
Estimated
benefit payments |
||||
| Year ending December 31, 2021 | $ |
|
|||
| Year ending December 31, 2022 |
|
||||
| Year ending December 31, 2023 |
|
||||
| Year ending December 31, 2024 |
|
||||
| Year ending December 31, 2025 |
|
||||
| Years ending December 31, 2026-2030 |
|
||||
| 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
|
Pension
Plan |
SERP |
Pension
Plan |
SERP |
Pension
Plan |
SERP | ||||||||||||||||||||||||||||||
|
Discount rate used to determine net periodic pension cost
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
|
Discount rate used to calculate end of year liability disclosures
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
|
Expected long-term rate of return on assets
|
|
% | n/a |
|
% | n/a |
|
% | n/a | ||||||||||||||||||||||||||
|
Rate of compensation increase
|
n/a | n/a | n/a | n/a | n/a | n/a | |||||||||||||||||||||||||||||
| ($ in thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||
| Type of Commitment | Fixed Rate | Variable Rate | Total | Fixed Rate | Variable Rate | Total | ||||||||||||||||||||||||||||||||
|
Loan commitments
|
$ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Unused lines of credit
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
Total
|
$ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
(
$ in thousands
)
Issuer
|
Amortized Cost | Fair Value | ||||||||||||
| Fannie Mae – mortgage-backed securities | $ |
|
|
|||||||||||
| Freddie Mac – mortgage-backed securities |
|
|
||||||||||||
| Ginnie Mae – mortgage-backed securities |
|
|
||||||||||||
| Federal Farm Credit Bank – bonds |
|
|
||||||||||||
| Federal Home Loan Bank system - bonds | 30,000 | 29,850 | ||||||||||||
| Small Business Administration securities |
|
|
||||||||||||
| Federal Reserve Bank - common stock |
|
|
||||||||||||
| First Citizens Bank – corporate bonds |
|
|
||||||||||||
| Bank of America corporate bonds |
|
|
||||||||||||
| Citigroup, Inc. corporate bonds |
|
|
||||||||||||
| Federal Home Loan Bank of Atlanta - common stock |
|
|
||||||||||||
| Loudoun County, Virginia - municipal bond | 5,599 | 5,735 | ||||||||||||
| Goldman Sachs Group Inc. corporate bond |
|
|
||||||||||||
| JP Morgan Chase corporate bond |
|
|
||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| Description of Financial Instruments |
Fair Value at December 31,
2020 |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||||||||
| Recurring | ||||||||||||||||||||||||||
|
Securities available for sale:
|
||||||||||||||||||||||||||
|
Government-sponsored enterprise securities
|
$ |
|
|
|
|
|||||||||||||||||||||
|
Mortgage-backed securities
|
|
|
|
|
||||||||||||||||||||||
|
Corporate bonds
|
|
|
|
|
||||||||||||||||||||||
|
Total available for sale securities
|
$ |
|
|
|
|
|||||||||||||||||||||
| Presold mortgages in process of settlement | $ |
|
|
|
|
|||||||||||||||||||||
| Nonrecurring | ||||||||||||||||||||||||||
|
Impaired loans
|
$ |
|
|
|
|
|||||||||||||||||||||
|
Foreclosed real estate
|
|
|
|
|
||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| Description of Financial Instruments |
Fair Value at December 31,
2019 |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||||||||
| Recurring | ||||||||||||||||||||||||||
|
Securities available for sale:
|
||||||||||||||||||||||||||
|
Government-sponsored enterprise securities
|
$ |
|
|
|
|
|||||||||||||||||||||
|
Mortgage-backed securities
|
|
|
|
|
||||||||||||||||||||||
|
Corporate bonds
|
|
|
|
|
||||||||||||||||||||||
|
Total available for sale securities
|
$ |
|
|
|
|
|||||||||||||||||||||
| Presold mortgages in process of settlement | $ |
|
|
|
|
|||||||||||||||||||||
| Nonrecurring | ||||||||||||||||||||||||||
|
Impaired loans
|
$ |
|
|
|
|
|||||||||||||||||||||
|
Foreclosed real estate
|
|
|
|
|
||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| Description |
Fair Value at December 31,
2020 |
Valuation
Technique |
Significant Unobservable
Inputs |
Range (Weighted Average) | ||||||||||||||||||||||
| Impaired loans - valued at collateral value | $ |
|
Appraised value | Discounts applied for estimated costs to sell |
|
|||||||||||||||||||||
| Impaired loans - valued at PV of expected cash flows | $ |
|
PV of expected cash flows | Discount rates used in the calculation of PV of expected cash flows | 4-11% (6.21%) | |||||||||||||||||||||
| Foreclosed real estate |
|
Appraised value | Discounts for estimated costs to sell |
|
||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| Description |
Fair Value at December 31,
2019 |
Valuation
Technique |
Significant Unobservable
Inputs |
Range (Weighted Average) | ||||||||||||||||||||||
| Impaired loans - valued at collateral value | $ |
|
Appraised value | Discounts applied for estimated costs to sell |
|
|||||||||||||||||||||
| Impaired loans - valued at PV of expected cash flows | $ |
|
PV of expected cash flows | Discount rates used in the calculation of PV of expected cash flows | 4-11% (6.50%) | |||||||||||||||||||||
| Foreclosed real estate |
|
Appraised value | Discounts for estimated costs to sell |
|
||||||||||||||||||||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
|
($ in thousands) |
Level in
Fair Value Hierarchy |
Carrying
Amount |
Estimated
Fair Value |
Carrying
Amount |
Estimated
Fair Value |
||||||||||||||||||||||||||||||
|
Cash and due from banks, noninterest-bearing
|
Level 1 | $ |
|
|
|
|
|||||||||||||||||||||||||||||
|
Due from banks, interest-bearing
|
Level 1 |
|
|
|
|
||||||||||||||||||||||||||||||
|
Securities held to maturity
|
Level 2 |
|
|
|
|
||||||||||||||||||||||||||||||
| SBA loans held for sale | Level 2 |
|
|
|
|
||||||||||||||||||||||||||||||
|
Total loans, net of allowance
|
Level 3 |
|
|
|
|
||||||||||||||||||||||||||||||
|
Accrued interest receivable
|
Level 1 |
|
|
|
|
||||||||||||||||||||||||||||||
|
Bank-owned life insurance
|
Level 1 |
|
|
|
|
||||||||||||||||||||||||||||||
| SBA servicing asset | Level 3 |
|
|
|
|
||||||||||||||||||||||||||||||
|
Deposits
|
Level 2 |
|
|
|
|
||||||||||||||||||||||||||||||
|
Borrowings
|
Level 2 |
|
|
|
|
||||||||||||||||||||||||||||||
|
Accrued interest payable
|
Level 2 |
|
|
|
|
||||||||||||||||||||||||||||||
| Long-Term Restricted Stock | |||||||||||
| Shares | Grant Date Fair Value | ||||||||||
| Nonvested at January 1, 2018 |
|
$ |
|
||||||||
| Granted during the period |
|
|
|||||||||
| Vested during the period |
(
|
|
|||||||||
| Forfeited or expired during the period |
(
|
|
|||||||||
| Nonvested at December 31, 2018 |
|
$ |
|
||||||||
| Granted during the period |
|
|
|||||||||
| Vested during the period |
(
|
|
|||||||||
| Forfeited or expired during the period |
(
|
|
|||||||||
| Nonvested at December 31, 2019 |
|
$ |
|
||||||||
| Granted during the period |
|
|
|||||||||
| Vested during the period |
(
|
|
|||||||||
| Forfeited or expired during the period |
|
|
|||||||||
| Nonvested at December 31, 2020 |
|
$ |
|
||||||||
| Options Outstanding | |||||||||||||||||||||||
|
Number of
Shares |
Weighted-
Average Exercise Price |
Weighted-
Average Contractual Term (years) |
Aggregate
Intrinsic Value |
||||||||||||||||||||
| Balance at January 1, 2018 |
|
$ |
|
||||||||||||||||||||
| Granted |
|
|
|||||||||||||||||||||
| Exercised |
(
|
|
$ |
|
|||||||||||||||||||
| Forfeited |
|
|
|||||||||||||||||||||
| Expired |
|
|
|||||||||||||||||||||
| Balance at December 31, 2018 |
|
$ |
|
||||||||||||||||||||
| Granted |
|
|
|||||||||||||||||||||
| Exercised |
(
|
|
$ |
|
|||||||||||||||||||
| Forfeited |
|
|
|||||||||||||||||||||
| Expired |
|
|
|||||||||||||||||||||
| Balance at December 31, 2019 |
|
$ |
|
||||||||||||||||||||
| Granted |
|
|
|||||||||||||||||||||
| Exercised |
|
|
$ |
|
|||||||||||||||||||
| Forfeited |
|
|
|||||||||||||||||||||
| Expired |
|
|
|||||||||||||||||||||
| Outstanding at December 31, 2020 |
|
$ |
|
— | $ |
|
|||||||||||||||||
| Exercisable at December 31, 2020 |
|
$ |
|
— | $ |
|
|||||||||||||||||
| Actual |
Fully Phased-In Regulatory
Guidelines Minimum |
To Be Well Capitalized
Under Current Prompt Corrective Action Provisions |
|||||||||||||||||||||||||||||||||
| ($ in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||
| (must equal or exceed) | (must equal or exceed) | ||||||||||||||||||||||||||||||||||
| As of December 31, 2020 | |||||||||||||||||||||||||||||||||||
|
Common Equity Tier I Capital Ratio
|
|||||||||||||||||||||||||||||||||||
|
Company
|
$ |
|
|
% | $ |
|
|
% | $ N/A | N/A | |||||||||||||||||||||||||
|
Bank
|
|
|
% |
|
|
% |
|
|
% | ||||||||||||||||||||||||||
|
Total Capital Ratio
|
|||||||||||||||||||||||||||||||||||
|
Company
|
|
|
% |
|
|
% | N/A | N/A | |||||||||||||||||||||||||||
|
Bank
|
|
|
% |
|
|
% |
|
|
% | ||||||||||||||||||||||||||
|
Tier I Capital Ratio
|
|||||||||||||||||||||||||||||||||||
|
Company
|
|
|
% |
|
|
% | N/A | N/A | |||||||||||||||||||||||||||
|
Bank
|
|
|
% |
|
|
% |
|
|
% | ||||||||||||||||||||||||||
|
Leverage Ratio
|
|||||||||||||||||||||||||||||||||||
|
Company
|
|
|
% |
|
|
% | N/A | N/A | |||||||||||||||||||||||||||
|
Bank
|
|
|
% |
|
|
% |
|
|
% | ||||||||||||||||||||||||||
| As of December 31, 2019 | |||||||||||||||||||||||||||||||||||
|
Common Equity Tier I Capital Ratio
|
|||||||||||||||||||||||||||||||||||
|
Company
|
$ |
|
|
% | $ |
|
|
% | $ N/A | N/A | |||||||||||||||||||||||||
|
Bank
|
|
|
% |
|
|
% |
|
|
% | ||||||||||||||||||||||||||
|
Total Capital Ratio
|
|||||||||||||||||||||||||||||||||||
|
Company
|
|
|
% |
|
|
% | N/A | N/A | |||||||||||||||||||||||||||
|
Bank
|
|
|
% |
|
|
% |
|
|
% | ||||||||||||||||||||||||||
|
Tier I Capital Ratio
|
|||||||||||||||||||||||||||||||||||
|
Company
|
|
|
% |
|
|
% | N/A | N/A | |||||||||||||||||||||||||||
|
Bank
|
|
|
% |
|
|
% |
|
|
% | ||||||||||||||||||||||||||
|
Leverage Ratio
|
|||||||||||||||||||||||||||||||||||
|
Company
|
|
|
% |
|
|
% | N/A | N/A | |||||||||||||||||||||||||||
|
Bank
|
|
|
% |
|
|
% |
|
|
% | ||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Other service charges, commissions, and fees – interchange fees, net | $ |
|
|
|
|||||||||||||
|
Other operating expenses – dues and subscriptions (includes software subscriptions)
|
|
|
|
||||||||||||||
|
Other operating expenses – data processing expense
|
|
|
|
||||||||||||||
|
Other operating expenses – telephone and data line expense
|
|
|
|
||||||||||||||
|
Other operating expenses – marketing
|
|
|
|
||||||||||||||
| CONDENSED BALANCE SHEETS | As of December 31, | ||||||||||
| ($ in thousands) | 2020 | 2019 | |||||||||
| Assets | |||||||||||
|
Cash on deposit with bank subsidiary
|
$ |
|
|
||||||||
|
Investment in wholly-owned subsidiaries, at equity
|
|
|
|||||||||
|
Premises and Equipment
|
|
|
|||||||||
|
Other assets
|
(
|
|
|||||||||
|
Total assets
|
|
|
|||||||||
|
Liabilities and shareholders’ equity
|
|||||||||||
|
Trust preferred securities
|
|
|
|||||||||
|
Other liabilities
|
|
|
|||||||||
|
Total liabilities
|
|
|
|||||||||
| Shareholders’ equity |
|
|
|||||||||
|
Total liabilities and shareholders’ equity
|
$ |
|
|
||||||||
| CONDENSED STATEMENTS OF INCOME | Year Ended December 31, | ||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
|
Dividends from wholly-owned subsidiaries
|
$ |
|
|
|
|||||||||||||
|
Earnings of wholly-owned subsidiaries, net of dividends
|
|
|
|
||||||||||||||
|
Interest expense
|
(
|
(
|
(
|
||||||||||||||
|
All other income and expenses, net
|
(
|
(
|
(
|
||||||||||||||
|
Net income
|
$ |
|
|
|
|||||||||||||
| CONDENSED STATEMENTS OF CASH FLOWS | Year Ended December 31, | ||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
|
Operating Activities:
|
|||||||||||||||||
|
Net income
|
$ |
|
|
|
|||||||||||||
| Equity in undistributed earnings of subsidiaries |
(
|
(
|
(
|
||||||||||||||
| Decrease (increase) in other assets |
|
(
|
(
|
||||||||||||||
| (Decrease) increase in other liabilities |
(
|
|
|
||||||||||||||
|
Total – operating activities
|
|
|
|
||||||||||||||
|
Financing Activities:
|
|||||||||||||||||
|
Payment of common stock cash dividends
|
(
|
(
|
(
|
||||||||||||||
| Repurchases of common stock |
(
|
(
|
|
||||||||||||||
|
Proceeds from issuance of common stock
|
|
|
|
||||||||||||||
|
Stock withheld for payment of taxes
|
(
|
(
|
(
|
||||||||||||||
|
Total - financing activities
|
(
|
(
|
(
|
||||||||||||||
| Net increase (decrease) in cash |
|
(
|
|
||||||||||||||
|
Cash, beginning of year
|
|
|
|
||||||||||||||
|
Cash, end of year
|
$ |
|
|
|
|||||||||||||
| For Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
($ in thousands except per
share amounts) |
Income
(Numer-ator) |
Shares
(Denom-inator) |
Per Share
Amount |
Income
(Numer-ator) |
Shares
(Denom-inator) |
Per Share
Amount |
Income
(Numer-ator) |
Shares
(Denom-inator) |
Per Share
Amount |
||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Less: income allocated to participating securities | $ |
(
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS per common share | $ |
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
|
$ |
|
||||||||||||||||||||||||||||||||||||||
| Diluted EPS: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ |
|
|
$ |
|
|
$ |
|
|
||||||||||||||||||||||||||||||||||||||||||||
| Effect of Dilutive Securities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS per common share | $ |
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
|
$ |
|
||||||||||||||||||||||||||||||||||||||
| ($ in thousands) |
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||||
|
Unrealized gain (loss) on securities available for sale
|
$ |
|
|
(
|
|||||||||||||
|
Deferred tax (liability) asset
|
(
|
(
|
|
||||||||||||||
|
Net unrealized gain (loss) on securities available for sale
|
|
|
(
|
||||||||||||||
|
Postretirement plans asset (liability)
|
(
|
(
|
(
|
||||||||||||||
|
Deferred tax asset (liability)
|
|
|
|
||||||||||||||
|
Net postretirement plans asset (liability)
|
(
|
(
|
(
|
||||||||||||||
|
Total accumulated other comprehensive income (loss)
|
$ |
|
|
(
|
|||||||||||||
| ($ in thousands) |
Unrealized Gain
(Loss) on Securities Available for Sale |
Postretirement Plans Asset
(Liability) |
Total | ||||||||||||||
| Beginning balance at January 1, 2018 | $ |
(
|
(
|
(
|
|||||||||||||
| Other comprehensive income (loss) before reclassifications |
(
|
(
|
(
|
||||||||||||||
|
Amounts reclassified from accumulated other comprehensive income
|
|
|
|
||||||||||||||
| Net current-period other comprehensive income (loss) |
(
|
(
|
(
|
||||||||||||||
| Ending balance at December 31, 2018 |
(
|
(
|
(
|
||||||||||||||
| Other comprehensive income (loss) before reclassifications |
|
(
|
|
||||||||||||||
|
Amounts reclassified from accumulated other comprehensive income
|
(
|
|
|
||||||||||||||
| Net current-period other comprehensive income (loss) |
|
|
|
||||||||||||||
| Ending balance at Ending balance at December 31, 2019 |
|
(
|
|
||||||||||||||
|
Other comprehensive income (loss) before reclassifications
|
|
|
|
||||||||||||||
|
Amounts reclassified from accumulated other comprehensive income
|
(
|
|
(
|
||||||||||||||
| Net current-period other comprehensive income (loss) |
|
|
|
||||||||||||||
| Ending balance at December 31, 2020 | $ |
|
(
|
|
|||||||||||||
| For the Years Ended December 31, | |||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
| Noninterest Income | |||||||||||||||||
|
In-scope of Topic 606:
|
|||||||||||||||||
| Service charges on deposit accounts | $ |
|
|
|
|||||||||||||
| Other service charges, commissions, and fees: | |||||||||||||||||
| Interchange income |
|
|
|
||||||||||||||
| Other fees |
|
|
|
||||||||||||||
| Commissions from sales of insurance and financial products: | |||||||||||||||||
| Insurance income |
|
|
|
||||||||||||||
| Wealth management income |
|
|
|
||||||||||||||
| SBA consulting fees |
|
|
|
||||||||||||||
| Noninterest income (in-scope of Topic 606) |
|
|
|
||||||||||||||
| Noninterest income (out-of-scope of Topic 606) |
|
|
|
||||||||||||||
| Total noninterest income | $ |
|
|
|
|||||||||||||
| As of December 31, 2020 | |||||||||||||||||
| (a) | (b) | (c) | |||||||||||||||
| Plan category |
Number of securities to
be issued upon exercise of outstanding options, warrants and rights |
Weighted-average
exercise price of outstanding options, warrants and rights |
Number of securities available for
future issuance under equity compensation plans (excluding securities reflected in column (a)) |
||||||||||||||
| Equity compensation plans approved by security holders (1) | — | $ | — | 549,876 | |||||||||||||
| Equity compensation plans not approved by security holders | — | — | — | ||||||||||||||
| Total | — | $ | — | 549,876 | |||||||||||||
| (a) 1. | Financial Statements - See Item 8 and the Cross Reference Index on page 3 for information concerning the Company’s consolidated financial statements and report of independent auditors. | ||||
| 2. | Financial Statement Schedules - not applicable | ||||
| 3. | Exhibits | ||||
| The following exhibits are filed with this report or, as noted, are incorporated by reference. Except as noted below the exhibits identified have SEC File No. 000-15572. Management contracts, compensatory plans and arrangements are marked with an asterisk (*). | |||||
| 2.a | |||||
| 2.b | |||||
| 2.c | |||||
| 2.d | |||||
| 3.a |
Articles of Incorporation of the Company and amendments thereto were filed as
Exhibits 3.a.i through 3.a.v to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2002
, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as
Exhibits 3.1
and
3.2 to the Company’s Current Report on Form 8-K filed on January 13, 2009
, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as
Exhibit 3.1.b to the Company’s Registration Statement on Form S-3D filed on June 29, 2010
(Commission File No. 333-167856), and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as
Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on September 6, 2011
, and are incorporated herein by reference. Articles of Amendment to the Articles of Incorporation were filed as
Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on December 26, 2012
, and are incorporated herein by reference.
|
||||
| 3.b | |||||
| 4.a | |||||
| 4.b | |||||
| 10.a | |||||
| 10.b | |||||
| 10.c | |||||
| 10.d | |||||
| 10.e | |||||
| 10.f | |||||
| 10.g | |||||
| 10.h | |||||
| 10.i | |||||
| 10.j |
Employment Agreement between the Company and Richard H. Moore dated August 28, 2012 was filed as Exhibit 10.a to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, and is incorporated herein by reference
.
Amendments to this agreement were filed in the Company’s Current Reports on Form 8-K filed on March 9, 2017
and
February 9, 2018 and are incorporated herein by reference. (*)
|
||||
| 10.k | |||||
| 10.l | |||||
| 10.m | |||||
| 10.n | |||||
| 10.o | |||||
| 10.p | |||||
| 10.q | |||||
| 21 | |||||
| 23.1 | |||||
| 23.2 | |||||
| 31.1 | |||||
| 31.2 | |||||
| 32.1 | |||||
| 32.2 | |||||
| 101 | The following financial information from the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. | ||||
| (b) |
Exhibits - see (a)(3) above.
|
||||
| (c) |
No financial statement schedules are filed herewith.
|
||||
|
First Bancorp
|
||
|
By:
/s/ Richard H. Moore
|
||
|
Richard H. Moore
|
||
|
Chief Executive Officer
|
||
| Executive Officers | ||||||||
|
/s/ Richard H. Moore
|
/s/ Eric P. Credle | |||||||
|
Richard H. Moore
Chief Executive Officer
|
Eric P. Credle
EVP / Chief Financial Officer |
|||||||
| February 26, 2021 | (Principal Accounting Officer) | |||||||
| February 26, 2021 | ||||||||
| Board of Directors | ||||||||
|
/s/ James C. Crawford, III
|
/s/ Richard H. Moore | |||||||
|
James C. Crawford, III
Chairman of the Board
Director
|
Richard H. Moore
Director |
|||||||
| February 26, 2021 | ||||||||
| February 26, 2021 | ||||||||
|
/s/ Daniel T. Blue, Jr.
|
/s/ Thomas F. Phillips | |||||||
|
Daniel T. Blue, Jr.
Director
|
Thomas F. Phillips
Director |
|||||||
| February 26, 2021 | February 26, 2021 | |||||||
|
/s/ Mary Clara Capel
|
/s/ O. Temple Sloan, III | |||||||
|
Mary Clara Capel
Director
|
O. Temple Sloan, III
Director |
|||||||
| February 26, 2021 | February 26, 2021 | |||||||
|
/s/ Suzanne DeFerie
|
/s/ Frederick L. Taylor II | |||||||
|
Suzanne DeFerie
Director
|
Frederick L. Taylor II
Director |
|||||||
| February 26, 2021 | February 26, 2021 | |||||||
|
/s/ Abby J. Donnelly
|
/s/ Virginia C. Thomasson | |||||||
|
Abby J. Donnelly
Director
|
Virginia C. Thomasson
Director |
|||||||
| February 26, 2021 | February 26, 2021 | |||||||
| /s/ John B. Gould | /s/ Dennis A. Wicker | |||||||
|
John B. Gould
Director |
Dennis A. Wicker
Director |
|||||||
| February 26, 2021 | February 26, 2021 | |||||||
| /s/ Michael G. Mayer | ||||||||
|
Michael G. Mayer
Director |
||||||||
| February 26, 2021 | ||||||||